U.S. regulators should use caution in reforming mortgage lending rules that have benefited many Americans, the president of the Minneapolis Federal Reserve Bank, Gary Stern, said on Tuesday. Stern said many people were able to become homeowners because of innovative financing products like adjustable-rate mortgages, so "you don't want to throw the baby out with the bath water" by over-regulating them.
Fed's Stern Urges Caution on Mortgage Reform
After delivering remarks to the Financial Planning Association of Minnesota on Tuesday, Federal Reserve Bank of Minneapolis president Gary Stern urged caution on mortgage reform during a Q& A with reporters. From Reuters: