CFPB releases new criteria to protect borrowers
POSTED: Thursday, January 10, 2013 - 7:10am
UPDATED: Thursday, January 10, 2013 - 8:34am
National — The Consumer Financial Protection Bureau says they will release the new lending criteria on Thursday. The criteria will prevent consumers from borrowing too much money when they're unable to borrow a large amount.
Financial institutions already check for employment and credit but under these new guidelines consumers will be scrutinized more so than before. Meaning, you may have to save more money and bump up that credit score to secure a home loan.
In recent years, homeowners across El Paso and all over the country were facing ballooning mortgage payments that forced many to foreclose or short sale. According to Realty Trac, there are almost 700 homes that are currently foreclosed in El Paso.
These new guidelines will take effect in one year and under these new guidelines borrowers can sue lenders or investors if they feel their loan is unaffordable.