What are the “Ability to repay” rules about? In a nutshell, as this video shows, new laws require lenders to make a good-faith assessment of a borrower’s capacity to pay back their loan over time. It’s a longer-term view that goes beyond immediate income, debt and credit rating. These new Federal laws- supervised by the CFPB – require lenders to ask more questions – about income, assets, employment, credit history, and monthly expenses – as they relate to the proposed loan. For example, a lender offering a mortgage with a low initial rate must try to assess how a borrower will handle the later, higher rate as well. If you’re applying to borrow ask whether the program you’re considering is a Qualified Mortgage Ability-to-repay rules are built in to loans that meet Qualified Mortgage guidelines.
TitleTap provides turn-key websites and marketing tools like Video, Social Media Management, and Email Marketing for Title Agents and Real Estate Attorneys. Get more great marketing tips like this specifically relevant to Real Estate, Title Insurance, Mortgage Lending, and Law by subscribing or visiting our blog above.
Latest posts by TitleTap (see all)
- The 2022 FLTA Webinar Series Continues! - January 20, 2022
- Finding a Law Firm or Title Company Online is NOT Like Shopping on Amazon.com - January 7, 2022
- TitleTap Partners with Paymints.io on Online Payment Website Integration - July 16, 2021