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.

  • alpinequeen

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