New Mortgage Rules Set For Next Year Ensure That Borrowers Can Repay Home LoansJan 14 2013
By: Nicole Gates
New rules unveiled by the Consumer Financial Protection Bureau spell out how lenders must ensure that borrowers can repay their home loans. The rules, which go into effect in 2014, are designed to enhance customer safety, without tightening credit standards beyond the current levels.
While some lenders have expressed concerns that these new rules would create more restrictions, leading to more-stringent lending standards, the rules are made to prompt lenders to impose tighter standards for only specific parts of the market, particularly jumbo mortgages that are too large for government backing.
At Guaranteed Rate, we follow all rules and regulations when it comes to lending home loans, ensuring that our clients are getting an affordable mortgage for their dream homes, while making sure they are educated on all the options available for them. You can see full details about the new rules here, or you can contact us with any additional questions about how these rules could affect you.