WASHINGTON — Hoping to avoid another subprime crisis, theFederal Reserve on Monday approved a series of rules to moreclosely regulate the terms and circumstances of housing loans.

Lenders will be barred from making loans without proof of theborrower's income and must consider a borrower's ability to repaythe loan from sources besides the value of the home. In addition,lenders would have to ensure that borrowers set aside money fortaxes and insurance.

Also, the rules restrict penalties lenders impose for paying offloans early and require advertisements about mortgages to containmore information about rates and monthly payments. .