Navigating the New World of Mortgage Rules
Lenders face restrictions designed to keep homeowners from getting in over their heads
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More than seven years after the subprime bubble began to deflate, lenders and borrowers will begin operating under a new set of rules. Phasing in starting on Jan. 10, these regulations will take direct aim at boom-era lending habits that allowed borrowers to take on more debt than they could handle, with disastrous consequences for homeowners, lenders, and the broader economy. The highlight is that a modicum of logic will become standard: Lenders will no longer be allowed to sell a mortgage that a borrower can’t reasonably repay.