Fed Proposes Stricter U.S. Mortgage Standards

Reuters reports that loan providers would be required to make absolutely sure prospective borrowers possess the capacity to pay back their mortgages before giving them a loan, under a proposal released by the Federal Reserve on Tuesday. The rule, which is required by the Dodd-Frank financial reform law, is intended to firm up lending standards and combat home lending abuses that contributed to the 2007-2009 financial crisis.

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