“Taking on a mortgage may be the largest financial obligation of a consumer’s lifetime,” said CFPB Director Richard Cordray. “We want to make sure that potential homebuyers have the information they need to make responsible decisions and that current borrowers know about their new protections.”
The new rules require mortgage lenders to evaluate borrowers’ ability to repay before giving them a loan. They also establish a 43% debt-to-income ratio for many loans and place a 3% points and fees cap on brokers.
The CFPB’s educational materials for consumers include:
- A guide for housing counselors
- Mortgage tips and recommendations for those facing foreclosure
- Answers to common mortgage-related questions
- Consumer tools to help find housing counseling
- Fact sheets about the new regulations
Many of the regulations have come under withering fire from industry groups who say they place unfair burdens on brokers, who must comply with more stringent disclosure regulations than banks. Many also say that the “qualified mortgage” rules will have the effect of pushing many moderate-income borrowers out of the market.
The consumer educational materials can be found at consumerfinance.gov/mortgage
The Consumer Financial Protection Bureau on Wednesday launched a campaign to educate consumers about new mortgage rules taking effect in January.