For the FIRST TIME, federal regulators are requiring people to be able to repay loans...for the FIRST TIME! Did I mention this was the FIRST TIME...EVER?!
This is tantamount to an admission of the failures of government overreach...in the Community Reinvestment Act, in the sub-prime loan debacle, Fannie, Freddie, all of it!
AP: Federal regulators for the first time are laying out rules aimed at ensuring that mortgage borrowers can afford to repay the loans they take out.
The rules being unveiled Thursday by the Consumer Financial Protection Bureau impose a range of obligations and restrictions on lenders, including bans on the risky "interest-only" and "no documentation" loans that helped inflate the housing bubble.
Lenders will be required to verify and inspect borrowers' financial records. The rules discourage them from saddling borrowers with total debt payments totaling more than 43 percent of the person's annual income. That includes existing debts like credit cards and student loans.
CFPB Director Richard Cordray, in remarks prepared for an event Thursday, called the rules "the true essence of 'responsible lending.'"
Here's a link to some additional info on how Democrats wrecked the economy and successfuly blamed Republicans.
Truth Will Out.
