According to
Forbes.com congress has been busy making sure that the future never has the opportunity to reek such havoc on the housing market ever again in the future.

Paulson was busy convincing congress why the Fannie/Freddie rescue package needed to be passed. At the same time bank regulators wer busy acting on creating long term stability in the mortgage industry and the Federal Deposit Insurance Corporation was finalizing a policy relating to bonds and lenders.

Great – but what does all this mean to you as either a mortgage holder or someone who is hoping to get a mortgage in the near future? All these changes are designed to help protect home buyers in the future.

There are many reasons why a person might default on their mortgage but these past few years the main reason was because of deceptive and unfair practices. Here’s what you’ll have to look forward to with the new rules..

1. Lenders will not be allowed to make loans without proof of your income. The loan will have to also consider your ability to repay the loan from income and assets other than the home’s value.Require creditors to verify the income and assets to determine whether a borrower can repay the loan.
2. Require lender advertising to contain additional information about rates.
3. Restrict lenders’ use of prepayment penalties.
4. Require creditors to establish escrow accounts for property taxes and homeowners insurance for all first-lien mortgage loans.

All of these changes take effect in October of 2009 so keep this in mind if you are in the market for a mortgage.