New Mortgage Lending Regulations
JOPLIN, MO.--- The Consumer Financial Protection Bureau now requires lenders to take a closer look at who is borrowing money. Income potential, amount of debt, and job status are three areas the bureau already requires lenders to consider when processing a loan.
Now, federal officials want banks and financial institutions to look at a borrower's long-term income and will require documents such as tax returns. Local experts say this offers protection for everyone involved in the process.
"It's just going have to require additional research on the lender's part, which only protects the borrower too," says Cheryl Roderique, Arvest Bank, Mortgage Loan Manager.
Federal regulators hope taking a closer look at borrower's ability to pay back a loan will help prevent another housing crash.
Now, federal officials want banks and financial institutions to look at a borrower's long-term income and will require documents such as tax returns. Local experts say this offers protection for everyone involved in the process.
"It's just going have to require additional research on the lender's part, which only protects the borrower too," says Cheryl Roderique, Arvest Bank, Mortgage Loan Manager.
Federal regulators hope taking a closer look at borrower's ability to pay back a loan will help prevent another housing crash.
