Fed Issues New Mortgage Rules

nytimes.com — With no end in sight to the turbulence in the housing and financial markets, Federal Reserve chairman Ben Bernanke said that central bank would issue new lending rules to restrict exotic mortgages and high-cost loans for people with weak credit. At a forum on lending for low- and moderate-income households, Mr. Bernanke said the difficulties that led to Bear Stearns's collapse highlighted weaknesses in the financial system that policy makers were trying to address. He said they included poorly underwritten mortgages, regulatory gaps, tight credit and insufficiently capitalized financial institutions.

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