In a move to protect homeowners from "shady lending practices that have contributed to the housing crisis and propelled foreclosures to record highs," the Fed just approved a plan that would cut down on questionable lending practices. This includes subprime folks, or those with bad credit histories and / or low incomes.

Even borrowers who bought homes they couldn't afford would be protected.

Under the plan, lenders would be barred from making loans without proof of borrower income. This should've been in place from the start.

Lenders would be required to ensure that borrowers set aside monies for taxes and insurance cost.

Lenders would be restricted from penalizing early loan payoffs.

And lenders would be prohibited from making loans without first considering borrow ability to repay a loan from sources other than home value.

But it's too little, too late. The common sense approach to initiating a loan should've included these rules from the start. Lenders and borrowers, in my opinion, should be equally blamed for the crisis.