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US Authorities Have Toughened Rules Of Lending Out Mortgage Loans

26 December 2007

US Federal Reserve System has offered new rules of lending out mortgage loans.

These measures are aimed to cut volumes of high-risk mortgage credits.

In particular, new rules ban lending out credits to persons who cannot documentary confirm the declared level of their income.

Also the creditor will be obliged to set up a special account in the third organization to levy from the borrower property tax and housing insurance. The borrower can make up this account only in one year after allowance of the credit.

And, the main thing, this rules obliges the creditor to carry out auditing of the borrower and checking up for an opportunity to return the credit in any other way except for sale of a house, writes The Wall Street Journal.


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