Fed Averts Final Call on Foreclosure Rule

Fed Averts Final Call on Foreclosure Rule

Fed Averts Final Call on Foreclosure RuleThe Federal Reserve said it will no longer push ahead on a controversial proposal that would impact home foreclosures. Instead, the central bank will leave the decision to the new Consumer Financial Protection Bureau, which debuts in July and will oversee the truth-in-lending law.

The Fed had proposed a rule that would make a key timing change of when a borrower can cancel a mortgage that violates disclosure requirements under the truth-in-lending law. Currently, borrowers have up to three years to take a lender to court to cancel a loan--known as “rescission.”

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