Fed Adopts Plan to Curb Shady Mortgage Practices

Federal Reserve Chairman Ben Bernanke delivers remarks at the FDIC Forum on Mortgage Lending for Low and Moderate Income Households, Tuesday, July 8, 2008, in Arlington, Va. (AP Photo/Luis M. Alvarez)
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Washington (AP) The Federal Reserve has adopted rules to give home buyers more protection from the types of shady lending practices that have contributed to the housing crisis and propelled foreclosures to record highs.

Chairman Ben Bernanke and his Central Bank colleagues approved a plan today that would crack down on dubious lending practices that have hurt many of the riskiest “subprime” borrowers: people with tarnished credit histories or low incomes.