Federal Reserve proposes new rules for home mortgages

The Federal Reserve has come up with a proposal it believes will offer borrowers protection against questionable lending practices.See the whole story here: http://news.yahoo.com/s/ap/20071218/ap_on_bi_ge/fed_mortgage_crisisThe plan, which is expected to be finalized next year, focuses primarily on the subprime mortgage market.  Record numbers of these types of loans have gone into foreclosure in the past year.There are many differing views on the best response to this mortgage situation ranging from allowing the financial markets to work through things on their own to the government creating legislation that would assist lenders and borrowers who have gotten into a bad situation with their adjustible rate mortgages.Regardless of where you personally fall on this spectrum, the lesson to be learned from this situation is that, ultimately it is up to you to fully understand the conditions and consequences of your mortgage before you sign on the dotted line.  Make sure you have complete information about what you’re getting into and know how it will affect your budget both today and down the road.  If you have questions, seek out the advice of competent professionals you trust before making a decision.