New Federal Statement on Subprime Mortgages

The Federal Financial Agencies have issued new standards for subprime mortgages. These new standards include protection for consumers with adjustable rate mortgages which require that the lender provide 60 days notice prior to a rate increase to give consumers time to refinance their loans without a prepayment penalty. They also encourage lenders to enter into workout arrangements with borrowers prior to commencing foreclosure proceedings. Follow this link to the full text of this document. http://www.federalreserve.gov/boarddocs/press/bcreg/2007/20070629/attachment.pdf