I think this is more wrong than right...

Fed Approves Plan to Curb Risky Lending

By a 5-to-0 vote, the Fed approved a plan that would tighten provisions meant to protect borrowers and apply them to a far larger share of home loans — whether from banks, mortgage companies or other lenders — than under current regulations.
...

In general, the rules are meant to deter unscrupulous lenders from persuading people that they can afford loans that ought to be out of their reach.
...
The plan includes provisions that would require more extensive disclosures, restrict advertising and make it harder to lend to borrowers with little or no documentation and a questionable ability to repay. It would also allow borrowers, in some circumstances, to sue lenders who violate the rules.
...

The action puts the Fed a step ahead of Congress, which is considering its own steps to tighten restrictions on the home loan industry. A bill put forward by Representative Barney Frank, a Massachusetts Democrat and chairman of the House Banking Committee, would expose mortgage brokers and lenders to legal liability if borrowers are unable to repay.

Umm...whaaa?

( Read more... )