For borrowers of loans to buy a home the ABILITY – to – REPAY rule’s key requirements are:  (1)  FINANCIAL INFORMATION MUST BE SUPPLIED AND VERIFIED.  Lenders must document borrowers’ employment, income, debt obligations, credit history, etc.  Lenders can no longer offer “low-doc” or “no-doc” loans.  (2)  A BORROWERS MUST HAVE SUFFICIENT ASSETS OR INCOME TO PAY BACK THE LOAN.  Lenders must evaluate a consumer’s debt-to-income ratio to determine if he or she can afford the loan.  (3)  TEASER RATES CAN NO LONGER HIDE A MORTGAGE’S TRUE COST.  Lenders must base their evaluation on a consumer’s ability to repay the principal and interest over the long term – not just during an introductory teaser rate.  BEFORE CLOSING lenders need to show no excess upfront points and fees, no toxic loan features and a cap on how much income can go to debt.  All of this from the Consumer Financial Protection Bureau’s (CFPB’s) Ability-to-Repay rule, which will go into effect January 2014