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