Fed draws up new rules for mortgage lenders

Most restrictions aimed at subprime, more than a year away

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The Federal Reserve Board Monday unveiled rule changes intended to curb deceptive mortgage lending practices, most of which will take effect in October 2009 and apply to all lenders whether they are supervised at the state or federal level.

Although lenders have drastically cut back on the subprime loans targeted by the most restrictive of the new rules, the rules could also apply to some jumbo mortgages and alt-A loans that carry high interest rates and hamper the recovery of lending to borrowers with blemished credit.