The Consumer Financial Protection Bureau is now requiringlenders to ensure that homebuyers can actually pay their mortgagebefore lending them the money.
|The new “Ability-to-Repay” rule issued Thursday protectsconsumers from irresponsible mortgage lending practices such as “nodoc” and “interest only” features that the bureau said helped forcemany borrowers into delinquency and foreclosure after the 2008housing collapse.
|“When consumers sit down at the closing table, they shouldn't beset up to fail with mortgages they can't afford,” CFPB DirectorRichard Cordray said in the bureau's announcement.
|“Our Ability-to-Repay rule protects borrowers from the kinds ofrisky lending practices that resulted in so many families losingtheir homes. This common-sense rule ensures responsible borrowersget responsible loans,” Cordray said.
|Available online are the rule and proposedamendments, a fact sheet explaining the new rule and a summary of the finalAbility-to-Repay rule.
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