The New York Times reports that the mortgage industry is pulling out the stops to halt proposed rules that would tighten eligibility for future loans, a move that could jeopardize future business opportunities though consumer groups state that they will ensure that future loans will not be given to suspect borrowers.
The rules are proposed by the Fed, which has been given authority to pass laws pertaining to mortgage standards. The rules "would force mortgage companies to show that customers can realistically afford their mortgages. It would require lenders to disclose the hidden fees often rolled into interest payments. And it would prohibit certain types of advertising considered misleading."
The story points out the weight of the industry interest groups involved in the responding to the proposed rules and attempting to minimize their impact:
The plan was criticized in separate filings by three of the industry’s most influential trade groups — the American Bankers Association, the Mortgage Bankers Association and the Independent Community Bankers of America. More modest concerns about some of the provisions were also raised by the National Association of Home Builders and the National Association of Realtors.
