Predatory Lending I
A proposal by the Federal Reserve Board to toughen measures against abusive lending practices. The plan would lower the annual percentage rate on mortgages that are covered by the Home Mortgage and Equity Protection Act, to eight percentage points above the rate for Treasury securities. The current threshold is 10 points. The proposal also would include the cost of single-premium credit life insurance as part of the points and fees test for HOEPA. To be published shortly, with comments due March 16.