New rules announced last week by the Consumer Financial Protection Bureau will tighten lending standards in the private-mortgage market. The changes, which start in 2014, will ban lenders from issuing loans if they don’t verify a borrower’s income or assets.The CFPB rules are meant to ensure that home buyers have the ability to repay their mortgages. They also affect many affluent buyers seeking private jumbo mortgages, those that start after $417,000 in most parts of the country or at $625,501 in high-cost metro areas.
Dreaming of a jumbo loan? It just got pricier
Most Popular Articles
Latest Articles
Freddie Mac’s proposed home equity product could unlock $850B in originations
Bank of America strategists also say that the absence of a robust securitization market could limit the potential of these second-lien loans
-
Brian Icenhower on impact of commission lawsuits and low volume
-
Opinion: If you’re chasing volume, you’re chasing the wrong carrot
-
Why are existing home prices rising when sales are still so low?
-
FundingShield’s Ike Suri on the limits of AI in fighting fraud
-
Former academy resumes role as Funding Longevity Task Force