The rules would restrict the use of prepayment penalties and low-documentation lending, require the use of escrow accounts for property taxes and homeowner's insurance, and ensure that lenders give sufficient consideration to borrowers' ability to repay.
They would allow for better risk 1  sharing, and they would create better incentives to get policy right. The standard policy recommendation was that controls on capital flows should therefore be liberalised, and where they were being applied, this was probably to cover for some other policy error. 1 Nowadays, the mainstream view has shifted.