02/22/2014
Tighter mortgage rules will soon squeeze certain Groups even more.
Years after the housing collapse, the new Consumer Financial Protection Bureau is closing the barn door on the loose lending that caused the crisis. But as home buyers struggle to get finance for new homes, some critics fear the door could be permanently nailed shut for many people seeking affordable housing.
The new lending rules will limit people from taking out a mortgage or refinance an existing one that puts their overall household borrowing at more than 43 percent of their income. That new debt cap also includes a wide swath of common forms of debt that count toward the total, including student loans, most fees and points related to a home purchase, and property taxes. It also tightens rules on documentation, and lenders who improvise to give customers easier terms will be open to consumer lawsuits if the loan go bad.
