New lending regulations expected to be proposed would apply to loans made by all types of lenders, including banks and brokers. The plan from the Fed, which has regulatory powers over the nation’s financial system, could be finalized next year.

The Fed is considering barring lenders from penalizing subprime borrowers and those who pay their loans off early. New regulations may also force lenders to make sure that borrowers, especially subprime borrowers, set aside money to pay for taxes and insurance and restricting loans that do not require proof of a borrower’s income.

click here for article

search for : lending regulations, subprime borrower