USA TODAY: …The rule, effective next year, says a qualified mortgage cannot:
• Contain “risky” features, such as terms that exceed 30 years, interest-only payments or negative-amortization payments where the principal amount increases.
• Carry fees and points in excess of 3% of the loan.
• Be issued to borrowers who, once getting the mortgage, will spend more than 43% of their income on debt payments…. (more)
If lenders meet those standards, borrowers who later default will have little recourse to fight foreclosure by claiming the lender sold them a risky loan… (more)
