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Fed Proposes New Loan Regulations for Subprime Borrowers

December 21, 2007
The Fed has proposed changes to Reg Z that would greatly affect "subprime" loans: http://www.federalreserve.gov/newsevents/press/bcreg/20071218a.htm The most significant of these changes would be no more "liar loans" for subprime borrowers, defined as those whose APR is 3% above comparable treasury yields.  This particular provision does NOT affect investor loans, only owner occupied borrowers. This move will clarify some of the confusion the lender industry has had over what steps to take in future lending practices, and will hopefully result in a loosening up on "A" loans not covered by these new regulations.

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William Bronchick, ESQ.

Nationally-Known Attorney, Author, and Speaker

Attorney William ("Bill") Bronchick, the host of Legalwiz.com, has authored six best-selling books and is sought nationwide for his 30+ years of real estate and legal knowledge. He has been interviewed by numerous media outlets, such as CNBC, TIME Magazine, USA Today, Investor Business Daily, Forbes, and the LA Times, to name a few. William Bronchick is the co-founder and past President of the Colorado Association of Real Estate Investors and the President of the Colorado Landlords Association. Click on the "About" link above for more information on William Bronchick.

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