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.
Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!
Leave a Reply