Getting a mortgage is about to get harder

Brenda Courtade

New mortgage rules are going into effect Jan. 10 to protect homeowners and investors from the kinds of risky mortgages that led so many people into foreclosure.

Mortgage reform is kicking in on Jan. 10, bringing significant changes to home loan financing.

The new rules were written by the Consumer Financial Protection Bureau to protect homebuyers from risky mortgages like the ones that led so many homeowners into foreclosure in recent years. The rules also protect investors from buying shoddy mortgage-backed investments.

The downside for consumers is that the rules make it harder for some people to qualify for a home loan. So, if you’re shopping for a mortgage or refinancing right now, it’s a good idea to close your loan before the end of the year.

In fact, though, many banks and mortgage lenders already are playing by the new rules.

Better borrowers

The Ability to Repay Rule requires lenders to…

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