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Released: June 29, 2010

What Wall Street reform means for your mortgage

Source: Tami Luhby, CNNMoney.com

Predatory lending would likely become a thing of the past if proposed regulatory reform rules are put into practice. And that may mean that mortgages get more expensive and more difficult to get, lenders warn.

The new rules, which Congress is expected to vote on this week, require that financial institutions ensure that borrowers can afford to repay the mortgages they are sold. Lenders would also have to tell borrowers the most they might pay on an adjustable rate mortgage and explain that payments will vary when the interest rate changes.

“These rules should help make sure people aren’t put into mortgages they can’t afford,” said Julia Gordon, senior policy council for the Center for Responsible Lending.

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