Things they are a changing when it comes to mortgage lenders and mortgage financing. According to Reuters, Washington is about to make the most sweeping rule changes ever, setting up both consumer protection standards and guidelines especially targeting high cost mortgages.

Government officials as well as the chair of the Federal Reserve has recognized the destructive nature of the permissive subprime mortgages that have left so many people facing foreclosure when the mortgage rates suddenly take a big spike upwards.

The problem is these types of mortgages are still being written and the unsuspecting consumer who just wants to own a home is quick to take the bait. It’s likely many of these will face the same foreclosure problems down the road.

With more than 2 million sub-prime mortgage out there whose interest rates are ready to increase it’s estimated there will be more than 500,000 foreclosures as a result of this.

The government has decided enough is enough and so they are about to impose much stricter rules relating to lending practices. Up until now they were leery about interfering with the marketplace and blocking mortgage products that could actually be useful to a certain demographic market that otherwise might not be able own a home.

However, the numbers are coming in over and over and the outlook isn’t good. Many are facing the devastation of foreclosure – too many! And many of these lenders motives and tactics need to be questioned. It seems some of the lenders might be in this with an ulterior motive. Some mortgage lending practices are questionable and the Feds are finally recognize this.

Of course with any intervention by the feds we have to take a wait and see approach. But in theory this should go along way to protecting unsuspecting consumers. There may be less opportunity for some segments of community to own home. But here are two things to think about -

1. Owning a home if it leads to foreclosure and devastation to your family is not worth the short term high of being a home owner. It’s known to destroy families!
2. And last of all, remember if it sounds too good to be true it probably is and that’s especially true when it comes to lending institutes of any kind. The first question to ask is what’s the catch?