Federal Reserve Approves Regulations
According to RECON:
WASHINGTON- (Reuters, Realtor.org) The Federal Reserve yesterday approved regulations requiring mortgage lenders to tell borrowers how much interest rates differ between prime mortgages and the higher-priced ones offered to less-affluent borrowers.
New Regulation C rules will require disclosures to prospective borrowers if the difference between prime and subprime rates is equal to or greater than 1.5 percentage points on a first-lien loan or greater than 3.5 percentage points on a second mortgage.
Does this change anything? Is this a step in the right or the wrong direction? Should this have been done earlier or not done at all? How do you see this changing lending or real estate for that matter?