Wondering what’s up with all the talk about new mortgage rules bouncing around? As of Jan. 10, the Consumer Financial Protection Bureau (the new bureau taking over HUD) has released a new set of rules for lenders to follow when determining whether or not a homebuyer is financially ready to purchase a home.
Lenders have seven years to comply with the new rules, but certain changes are already in effect - including the rules regarding the ability to repay and new qualified mortgage standards.
The changes were passed to hold lenders liable for bad loans, as well as to protect borrowers from loans they can’t afford. Sounds like a good deal, right? Here’s what you can expect the next time you purchase a home: