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This is directly from the Fed website (thanks NF).

Today, the Federal Reserve’s duties fall into four general areas: .                       • conducting the nation’s monetary policy by inf luencing the monetary and credit conditions in the economy in pursuit of maximum employ­ment, stable prices, and moderate long-term interest rates .                       • supervising and regulating banking institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers .                       • maintaining the stability of the financial system and containing systemic risk that may arise in financial markets .                       • providing financial services to depository institutions, the U.S. gov­ernment, and foreign official institutions, including playing a major role in operating the nation’s payments system

Note:  Responsibilites do not fall under any one category nor are they weighted.

Protecting the credit rights of consumers...

I am a young consumer and I do not think my credit rights have been protected.  I say the prior because of the following:

 My household income I thought was good.  I am young and as most of you know I am trying to purchase a house with my wife so I got the pencil out to see exactly what I could afford.  Interest rates are low...however there is a caveat...I work and live in Cali.  Guess what... there are very few homes that fall into the Freddie and Fannnie terms, most fall under the Jumbo Loan terms which are increasing (approximately 1 point higher than the 10-year yield).  Most homes out in the San Fernando /ConejoValley (where I currently rent) are around $700K.  Iwill have an estimated annual property tax of around 7K.  At the current interest rates I will be spending more than $4,500 per month.  Wonder why homes are not selling?  I can not afford it and I make over $100K annually (my wife makes over 60K).  So I live in my two bedroom apartment and get taxed up the ying-yang (like that term). Please don't tell me I should go ahead and borrow the money up front so I can realize the tax benefits later because that option has been already analyzed, exhausted and is not feasible.

The Fed should have protected the consumers in 2003 - 04 when the different banking institutions started offering $0 down, 4 1/2 % interest, or interest only loans to people who had a 500 FICO score.

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