January 19, 2010: Federal Reserve Urged to Strengthen Mortgage Rules

Thirty California community groups urged the Federal Reserve to strengthen mortgage lending rules in order to prevent predatory lending abuses from recurring and creating another financial crisis. The Federal Reserve was soliciting comments on proposed rules that finally address a number of issues that CRC, members and allies have been raising for years. The proposal includes placing restrictions on steering of borrowers into more costly loans; yield spread premiums where lenders pay brokers to stick borrowers with higher interest rate loans; and the use of English-only documents in loan transactions negotiated in non-English languages, as well as placing restrictions on Home Equity Lines of Credit abuses. To see the community group letter, click here.