Why the Fed’s Plan will Hurt Homeowners Posted December 19th, 2007 The Fed has endorsed rules on Tuesday of this week that would “protect” homeowners against shady lending practices. Note: While the The proposal applies to all new loans made by all lenders, including banks and brokers. Finalization is expected next year sometime. Apparently the government feels the need to find another “in” to create a nanny state. There are substantial problems with this that may hurt the entire market. As opposed to bank officers, mortgage brokers are not employees of the lending companies they work for. Instead, they work independently as free lance agents who are on the look out for borrowers looking for a good mortgage.
