Featured on 40:     Storm Week     Win a 60" TV!     40 Force: School Drive     Sox Trophies     Weather Discussion    
share on facebook share on twitter
Breaking News
Report: Plane Crashes in Taiwan, Killing 51 People Read more

A Look at the New Mortgage Rules

(WGGB/AP) — New rules aimed at protecting prospective home buyers took effect Friday.

As part of the new rules from the Consumer Financial Bureau, lenders must determine that a borrower has the ability to repay a mortgage before issuing the loan.

U.S. Senator Elizabeth Warren adds the rules will prohibit brokers from being paid by lenders to steer customers into higher-cost loans and strengthen the mortgage market by improving mortgage servicing practices.

Susan Fearn, Assistant Vice-President of Client Sales and Service at Springfield’s NUVO Bank, spoke with ABC40′s Dave Madsen Friday about the new rules and what they mean for consumers.

Information from the Associated Press was used in this report.

WGGB encourages readers to share their thoughts and engage in healthy dialogue about the issues. Comments containing personal attacks, profanity, offensive language or advertising will be removed. Please use the report comment function for any posts you feel should be reviewed. Thank you.

  • alpinequeen

    Rules? It used to be 20% down and the mortgage had to be no more than 25% of your gross monthly pay.