Fed adopts tougher mortgage rules

The Federal Reserve adopted a sweeping new set of rules that hope to prevent abusive or deceptive mortgage lending practices. These lending practices were blamed for accelerating the foreclosure crisis and the housing market’s downturn. The changes will not take effect until October 1, 2009, giving lenders time to adapt. The rules apply to high-cost loans for people with weak credit and will apply to all lenders, not just banks under federal supervision.