Fed wants to strip a key protection for homeowners

[marmar]

By Tony Pugh | McClatchy Newspapers


WASHINGTON — As Americans continue to lose their homes in record numbers, the Federal Reserve is considering making it much harder for homeowners to stop foreclosures and escape predatory home loans with onerous terms.

The Fed's proposal to amend a 42-year-old provision of the federal Truth in Lending Act has angered labor, civil rights and consumer advocacy groups along with a slew of foreclosure defense attorneys.

They're not only asking the Fed to withdraw the proposal, they also want any future changes to the law to be handled by the new Consumer Financial Protection Bureau, which begins its work next year.

In a letter to the Fed's Board of Governors, dozens of groups that oppose the measure, including the National Consumer Law Center, the NAACP and the Service Employees International Union, say the proposal is bad medicine at the wrong time. ........(more)

The complete piece is at: http://www.mcclatchydc.com/2010/12/01/104568/fed-wants-to-strip-a-key-protection.html#ixzz16y58URvv

[MNBrewer]

1. Is everyone ready for their new status as serfs?

[Tippy]

2. K&R....

[crikkett]

3. Does this article say that the Federal Reserve has the power to change a law?

Isn't the Federal Reserve a private, non-legislative entity?

checks and balances, anyone?

[indepat]

4. And the delusional continue to think this is not a fascist government?

:shrug:

[dgibby]

6. Denial ain't just a river in Egypt.

The Empire isn't going to end with a whimper.

[NNN0LHI]

5. Just about have my house paid off but increases in property taxes mean I will still lose my home

Any prospective home buyers had better give this some real thought before purchasing.

My property taxes have quadrupled in the 21 years since I bought this house. Went from $1200 a year to $4700 now. When this house is paid off the property taxes alone will be more than my original mortgage payment was, which included principal, interest, taxes and insurance.

When I bought this house I was still working and making three times what I am making now retired and on my pension. And as you can imagine that original payment was based on what I was making back then. Plus I had the option to work overtime to get bailed out if I ever got behind financially. That payment was a hell of a burden while I was still working back then.

Now making three times less in income my property taxes alone are going to be more than that original mortgage payment was.

Better think about that before buying.

Don(A future Wal-Mart greeter)

[struggle4progress]

7. Could we please have the Federal Register reference? The Federal Reserve doesn't have the power to

amend an act of Congress

I'd guess we're talking about Federal Register, Vol. 75 No. 185 (Friday, September 24, 2010) Proposed Rules at 58539ff, but I'm not sure