Mortgage-lending to be subject to more aggressive regulation by the FTC

According to Bloomberg’s reports the U.S. Federal Trade Commission (FTC) made a statement that it is going to implement new authority to bar lending practices by mortgage brokers who have deceived borrowers.

In March Congress passed a $410 billion spending package which authorizes the FTC to prohibit such abusive practices as deceptive advertising and servicing procedures, FTC Chairman Jon Leibowitz told the news agency in an interview.

While the U.S. economy suffers recession times "we have to step up our vigilance on predatory practices in the financial services area" as "there are a lot of American consumers that are hurting," stated Leibowitz.

Besides, the agency says that Leibowitz pledged that antitrust laws will be enforced more aggressively to challenge business practices by companies which harm competition.