Finally it seems the Federal Reserve is stepping in to crack down on “shady practices” by some lenders when it comes to giving out home mortgages. In fact, it now seems clear the government thinks at least part of the blame for the housing crisis can be laid at the feet of so-called “predatory lenders.”

The Fed unanimously approved new lending rules Monday in a crackdown on such practices. The Fed’s new rules would apply to all mortgage lenders, not just those supervised by the Fed. Even though some amended rules were issued last December, many saw potential loopholes that could leave shady practices in place, like letting borrowers with weak credit take out expensive sub-prime loans. Now the Fed hopes it can close those loopholes.

Here is what the new and improved rules promise to do:

1. Prevent loans borrowers can’t afford. Lenders will now be forced to evaluate a borrower’s ability to repay his loan based on income and other assets besides the value of the home itself.

2. Require lenders to verify income and assets. This should be a no-brainer, but now lender will be required to do this.

3. Limit pre-payment penalties. End expensive penalties levied against borrowers who pay their loans off early.

4. Require escrow accounts for taxes and insurance. Lenders should compel their borrowers to set up escrow accounts, if there is a chance they can fall delinquent on tax or insurance payments.

5. Restrict advertising. Lenders must include additional information about rates and loan features, and stop deceptive tactics, such as calling a rate fixed in an ad when it can be changed to adjustable.

Unfortunately, these new proposals won’t help the millions of Americans who are already behind on their loans — homeowners suffering the double whammy of higher payments on adjustable rate mortgages and falling home values. In effect, they’re stuck paying expensive loans on homes worth less than when they bought them. It’s no wonder home foreclosures are up 53 percent from a year ago. Hopefully these new rules can help prevent a future housing crisis by tightening lending standards and reigning in predatory practices.

Better late than never.