July 15, 2024

Tighter 2014 home mortgage rules coming

government home loans

January 10, 2014: that’s when federal rules tightening lending standards will take effect. Issued by the consumer financial protection Bureau these changes aim their curb what the government considers loose lending practices that triggered the real estate meltdown.

The new regulations encourage lenders to underwrite only “qualified mortgages” that meet the tougher standards. Home mortgage lenders whose mortgages dod not meet the new tougher standards will be subject to good faith lawsuit from the borrowers, years later if by some unforeseen event, they are forced into the default on their mortgage.

These new tougher government mandated home mortgage loan changes will affect both the people at the low-end of the “jumbo” loan spectrum – usually loans above $417,000 in most markets  and $625,000 in a high-end price areas.

2014 home mortgage rules