{"id":968,"date":"2013-05-05T14:14:47","date_gmt":"2013-05-05T19:14:47","guid":{"rendered":"http:\/\/www.orangesand.com\/?p=968"},"modified":"2013-05-05T14:14:47","modified_gmt":"2013-05-05T19:14:47","slug":"ability-to-pay-rules","status":"publish","type":"post","link":"http:\/\/www.thebains.com\/blog\/2013\/05\/05\/ability-to-pay-rules\/","title":{"rendered":"ABILITY to PAY RULES"},"content":{"rendered":"

For borrowers of loans to buy a home the ABILITY – to – REPAY rule’s key requirements are:\u00a0 (1)\u00a0 FINANCIAL INFORMATION MUST BE SUPPLIED AND VERIFIED.\u00a0 Lenders must document borrowers’ employment, income, debt obligations, credit history, etc.\u00a0 Lenders can no longer offer “low-doc” or “no-doc” loans.\u00a0 (2)\u00a0 A BORROWERS MUST HAVE SUFFICIENT ASSETS OR INCOME TO PAY BACK THE LOAN.\u00a0 Lenders must evaluate a consumer’s debt-to-income ratio to determine if he or she can afford the loan.\u00a0 (3)\u00a0 TEASER RATES CAN NO LONGER HIDE A MORTGAGE’S TRUE COST.\u00a0 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.\u00a0 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.\u00a0 All of this from the Consumer Financial Protection Bureau’s (CFPB’s) Ability-to-Repay rule, which will go into effect January 2014<\/p>\n","protected":false},"excerpt":{"rendered":"

For borrowers of loans to buy a home the ABILITY – to – REPAY rule’s key requirements are:\u00a0 (1)\u00a0 FINANCIAL INFORMATION MUST BE SUPPLIED AND VERIFIED.\u00a0 Lenders must document borrowers’ employment, income, debt obligations, credit history, etc.\u00a0 Lenders can no longer offer “low-doc” or “no-doc” loans.\u00a0 (2)\u00a0 A BORROWERS MUST HAVE SUFFICIENT ASSETS OR INCOME […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"_links":{"self":[{"href":"http:\/\/www.thebains.com\/blog\/wp-json\/wp\/v2\/posts\/968"}],"collection":[{"href":"http:\/\/www.thebains.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.thebains.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.thebains.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.thebains.com\/blog\/wp-json\/wp\/v2\/comments?post=968"}],"version-history":[{"count":0,"href":"http:\/\/www.thebains.com\/blog\/wp-json\/wp\/v2\/posts\/968\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.thebains.com\/blog\/wp-json\/wp\/v2\/media?parent=968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.thebains.com\/blog\/wp-json\/wp\/v2\/categories?post=968"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.thebains.com\/blog\/wp-json\/wp\/v2\/tags?post=968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}