New rules on subprime lenders

Note the new rules that have come down regulating much of the subprime market.

The rules are likely to make it harder for some borrowers to qualify for loans, although many lenders have been tightening their standards in response to rising levels of foreclosures and mortgage delinquencies.

The most important change is that financial institutions are told that adjustable-rate mortgages should be given only to borrowers who would qualify to meet the loan terms even after the rate resets higher.

Note the new rules have come down from the various federal financial regulators...many of the state banks, ect. are not impacted.