New Fed mortgage rules to take effect

A new set of rules from the Federal Reserve on mortgage lending will go into effect Oct. 1, mandating greater oversight among mortgage lenders and brokers in an effort to avoid high-cost loans being granted to borrowers with poor credit. According to banking regulators, loans granted to borrowers with weak credit are often have interest rates more than 1.5 percentage points higher than those granted to prime borrowers. The new regulations were actually finalized in July, and some consumer advocates say that the delay makes it too late for these rules to help borrowers deep into default.