Lenders Will Be Limited on Fees Charged, Fed Says
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
The Federal Reserve will make it harder for lenders to charge fees for early repayment of subprime mortgages, according to consumer advocates and a regulator. The change will probably be one of several recommendations from the Fed’s Board of Governors when it gathers in Washington tomorrow to respond to the collapse in the market for subprime home loans. The chairman of the Fed, Ben Bernanke, is under fire from lawmakers who say the Fed didn’t do enough to enforce lending rules and was too slow to write new regulations as subprime borrowing.
