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Before making more rules and regulations to control subprime borrowing we suggest enforcement of existing rules. Why did the government set aside the final quarter of 2007 to review non-bank lenders? Warning signs existed as far back as 2002. Ameriquest paid a predatory lending fine not too long ago. The states took enfiorcement action against Household International and Ameriquest, and received flack from the Federal level while doing so. Something is wrong with the system. Protectionism by the OCC is the first issue that should be examined if the Fed really wants to look at the problem. OCC complaints went unanswered both before and after the Julie Williams era.

The Federal Reserve will propose new regulations by the end of this year on subprime loans, Fed Governor Randall Kroszner said at the National Bankers Association convention in Durham, N.C.

There had been calls for action before the housing bubble began deflating last year, but since the credit crisis that shook the financial markets this summer, they have gotten louder, with Congress criticizing the Federal Reserve and other U.S. banking regulators for not doing more to prevent abuses in subprime lending.

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