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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCordray Rules!
U.S. Consumer Watchdog to Issue Mortgage Rules
WASHINGTON Banks and other lenders will be prohibited from making home loans that offer deceptive teaser rates or require no documentation from borrowers, and will be required to take more steps to ensure that borrowers can repay, under new consumer protections to be announced on Thursday.
The rules, being laid out by the Consumer Financial Protection Bureau and taking effect next January, will also set some limits on interest-only packages or negative-amortization loans, where the balance due grows over time. Banks can make such loans, but the new rules would not protect them from potential borrower lawsuits if they do so.
And mortgage originators will in most cases be restricted from charging excessive upfront points and fees, from making loans with balloon payments and from making loans that load a borrower with total debt exceeding 43 percent of income . . .
When consumers sit down at the closing table, they shouldnt be set up to fail with mortgages they cant afford, said Richard Cordray, the director of the consumer bureau. Our ability-to-repay rule protects borrowers from the kinds of risky lending practices that resulted in so many families losing their homes.
read more: http://www.nytimes.com/2013/01/10/business/consumers-win-some-mortgage-safety-in-new-rules.html?partner=rss&emc=rss&smid=tw-nytimes&_r=0&pagewanted=print
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Cordray Rules! (Original Post)
bigtree
Jan 2013
OP
Cha
(297,238 posts)1. Yes, he does!
A tough Dem in action.. thanks bigtree
bigtree
(85,996 posts)2. appointed and installed forcefully by this President
. . . with Congress off-balance and technically in session. What a coup! Richard Cordray has been very dynamic and productive. One of the best agencies of government, by far.
Cha
(297,238 posts)4. That's right.. thanks for the REMINDER!
Maeve
(42,282 posts)3. Proud of my hometown boy!
He's seen what that kind of crap did here in Ohio and is protecting consumers.