Federal Reserve bans penalties on mortgages that make it harder for people to refinance
Peter Oberois
Jul. 12, 2008

Federal Reserve wants to stop abusive lending practices that have created a total mess of the US economy and the meltdown now is spilling over the rest of the world economies.

The Fed prohibition on prepayment penalties, part of a broader response to the collapse of the subprime mortgage market, targets high-cost loans with interest rates that reset in the first four years. The new rules and regulations also would limit charges when borrowers seek to pay off mortgages in the first two years on other types of high-priced loans.

It is a great news for borrowers that fail to look at the fine print behind their mortgage contract.

According to some experts, this is a move in the right direction but still falls short of what consumer groups have advocated which is an outright ban on prepayment penalties for all subprime and non- traditional mortgages.

Federal Reserve bans penalties on mortgages that make it harder for people to refinance
Peter Oberois
Federal Reserve wants to stop abusive lending practices that have created a total mess of the US economy...
READ MORE>>

It is not the time yet for Fannie Mae, Freddie Mac – it will in 2012 when the two will go belly up – billions from Government will them afloat for now
Joe Weinman
The shares of Fannie Mae, Freddie Mac reached the lowest level in more than 17 years...
READ MORE>>

IndyMac failed because of liquidity crisis prompting seizure by U.S. regulators – how close is your mortgage banker?
Fred Day
What happened to the IndyMac bank should work as a wake up call for all the mortgage investors and homeowners.
READ MORE>>

The mega oil bear market signals a wake up call for bulls in Wall Street and real estate corners of the country
Fred Day
The demand of US gasoline is at five year low. The demand supply equations and analytic as well a quantitative...
READ MORE>>

Residential real-estate market to strengthen as Federal Government provides the floor for Fannie Mae and Freddie Mac’s insolvency – what happens to budget deficit
Paula Rabke
Fannie Mae and Freddie Mac are going insolvent. The stock chart patterns are telling a Bear Stern type capitulation of the both perhaps within a month.
READ MORE>>

US bear market in stocks and real estate ready for an intermediate bounce back before going further down
Karen Zuba
The bearish sentiment and hopelessness among the Wall Street professionals are conspicuous.
READ MORE>>

Federal Reserve ready to bail out the investment banks – how many billions of dollars in Federal budget deficit will it create?
Brittany Dheal
The Federal Reserve under Bernanke has indicated that it is ready for taking the necessary steps to bail out the Investment banks...
READ MORE>>

MORE ARTICLES >>