WASHINGTON — The Federal Reserve endorsed an array of new rules that may give future homebuyers greater protections than those available to those who bought in the housing bubble years.

Acting on protecting consumers against mortgage scams and shady lending practices, the Fed approved safeguards for subprime borrowers that will apply to all banks, credit unions and mortgage brokers.

The nation's banking regulator and architect of monetary policy, The Fed's new rules would:

• restrict lenders from penalizing certain subprime borrowers with tarnished credit or low incomes who pay off their loans early (no prepayment penalties), with some restrictions on expiration and conditions;
• compel lenders to create escrow accounts so that subprime borrowers can pay for taxes and insurance;
• Require that lenders cannot make loans when they don't have proof of a borrower's income (no “stated income loans”);
• Forbid lenders from engaging in practices without considering a borrower's ability to repay a home loan by using a home increasing value to do so.

Fed Chairman Ben Bernanke said that unfair and deceptive practices “have no place in our mortgage system,” because they hurt borrowers, their families and entire communities. The Fed isn't yet through rethinking the regulatory environment covering mortgages and is still contemplating other changes, including rules on disclosures and certain advertising restrictions.