Thursday, the Consumer Financial Protection Bureau announced it would impose new restrictions on lenders. The goal is to prevent defaults in the future. The changes include banning "interest only" and
"no documentation" loans. These type of loans inflated the housing bubble. Other modifications included setting 43% as the debt ceiling of a person's annual income.Teaser rates, and balloon mortgages were also addressed. The overall purpose of these actions was to protect consumers, while at the same time, giving banks legal assurance they need to increase lending.
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