July 28, 2008 / Law Alert

Fed Approves New Mortgage Loan Rules

The Board of Governors of the Federal Reserve recently issued a final rule amending Regulation Z and modifying certain mortgage lending practices in the hopes of protecting consumers and facilitating responsible lending in the wake of the subprime mortgage crisis. In addition to tightening restrictions on writing subprime loans, the rule also places a number of limitations upon certain advertising practices deemed to be misleading to consumers. The majority of these new regulations go into effect as of October 2009.