Are government regulated “vanilla” home loan packages the new standard?  Builder Online explains.

WASHINGTON – If President Barack Obama gets his way, consumers who take out mortgages would automatically get a “plain vanilla” loan – such as a traditional 30-year fixed-rate mortgage – unless they opted for a riskier variety.

Obama’s plan to revamp financial regulation aims to protect borrowers from the confusing and high-risk mortgages that fed a pandemic of delinquencies and foreclosures, led to the worst financial crisis in decades and thrust the nation into a deep recession.

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