Federal Reserve To Revise Home Ownership and Equity Protection Act
Federal Reserve To Revise Home Ownership and Equity Protection Act
The Federal Reserve Board will meet Dec. 18 to issue long-awaited revisions to its Home Ownership and Equity Protection Act regulations that address abuses associated with the subprime mortgage industry.
The proposed HOEPA rule will address prepayment penalties, failure to escrow taxes and insurance, stated income and low documentation lending, and ability to-repay standards.
In a letter to the Fed, 17 Democrats on the Senate Banking Committee urged the Fed to act “forcefully” to protect consumers.
“We appreciate the fact that the Board is moving forward with a rule making under HOEPA, and expect the Board to meet the duty Congress entrusted to it to end the abusive practices … that have undermined confidence in the subprime mortgage market and the economy as a whole,” the Dec. 7 letter says.
No Tags
Original post by Admin