"Liar" home loans will be hard to get in 2014

In January, new lending rules go into effect which are expected to curtail many of the bad lending practices which contributed to the sub-prime housing crash. The major new requirement is the Ability-to-Repay  condition that makes lenders confirm that someone on the loan has the ability to repay it. The second major change will see the Consumer Financial Protection Agency label certain loans as "qualified mortgages" (QM's). These loans can't be interest only, balloon mortgages, or contain negative amortization provisions, or be longer than 30 years. More than 95% of all existing mortgages already meet the new standards coming  January 10, 2014. Borrowers will be required to prove income with documentation, be within the 43% debt to income ratio, and meet other more conservative conditions of the new law.