Final HOEPA Rule Aimed at Reviving Subprime Market Severely Limits Prepayment Penalties
July 18, 2008
The Federal Reserve’s finalized rules for subprime lending will alter the MBS landscape, when the market returns. While the rules do not contain assignee liability, subprime MBS investors used to the protection of prepayment penalties will see those perks limited. The Fed’s revision this week of its Home Ownership and Equity Protection Act rule sets new standards for subprime loans, most of which...