Some Mortgage Lending Practices Could Be Banned
The Federal Reserve Board is weighing whether it should ban some mortgage lending practices that fueled the recent housing market boom, Fed governor Randall Kroszner told a panel of lawmakers Wednesday. . . . "We will also seriously consider whether there are mortgage lending practices that should be prohibited,"
Kroszner said the Fed was specifically eyeing 'stated-income' loan applications and prepayment penalties, as well as considering whether lenders should require monthly payments of annual fees like taxes.
This is one way to close the "Knowledge Gap".