US News – Susan Johnston
As the housing market heats up again following the slowdown of the past few years, many consumers will try to buy a home for the first time or upgrade a home with a mortgage that had previously been underwater. If you fall into either camp, you should know that a new set of rules passed as part of the Dodd-Frank Act – enacted in response to the financial crisis of the late 2000s – will go into effect Jan. 10, 2014. The rules will require lenders of qualified mortgages to conduct more thorough analyses of mortgage applicants’ financial information to ensure applicants can afford to repay the loan.
According to the Consumer Financial Protection Bureau, under the Ability-to-Repay rule, the lender generally must consider eight factors. These include your current income or assets, current employment status, credit history, the monthly payment for the mortgage (based…
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