New Orleans Real Estate - New Mortgage Lending Rules The Federal Reserve just announced yesterday that it has approved some new lending rules in response to the current subprime loan/real estate issue. The new rules are specifically tailored to subprime loans and are meant to protect consumers from "shady" mortgage lenders. How does this effect us in New Orleans? Take a look at a few of the new rules and they may very well apply to you: Prohibit creditors from extending credit without regard to a consumer's ability to repay the real estate loan from income and assets other than the home's value. The lender complies, in part, by assessing repayment ability based on the highest scheduled payment in the first seven years of the loan. Require creditors to verify income and assets they rely ...
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