For example, the Fed could pop housing bubbles by imposing a maximum loan-to-value ratio for mortgages.

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Once approved for the maximum loan, Locascio wasted little time in locating and bidding on a property she liked.

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The maximum loan by law is 50% of the vested account balance, and must be repaid within five years through payroll deductions.

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The previous maximum loan-to-value ratio of 125% has been eliminated.

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Regulators could instruct lenders that the combined maximum loan amount should not exceed 85% of the moving-average value of a property, offered as collateral, over the preceding four to six years.

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After a deed-in-lieu of foreclosure, preforeclosure sale, or short sale, there is a mandatory waiting period of two years for a loan with an 80% maximum LTV (loan-to-value ratio), or four years for a loan with a 90% LTV.

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This should mean payday lenders only roll over a loan to a customer on a maximum of three occasions.

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Often varying by state, usury laws specify the maximum legal interest rate that may be charged for a loan arrangement.

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