The Real Deal Miami

New rules aimed at reducing risky mortgage lending

January 10, 2013 02:15PM

Consumer Financial Protection Bureau officials today released new rules for mortgages aimed at reducing risky lending practices and allowing borrowers to know exactly what kind of loan they’re taking out, CNN reported. The measure is meant to prevent institutions from giving out loans that their borrowers cannot afford. The new rules will go into effect on Jan. 21, and lenders will have a year to put them into practice. Loans now become “qualified mortgages” when they satisfy new criteria. This, in turn, protects the banks from lawsuits from borrowers. [more]