US Sen. Warren: New mortgage rules will aid buyers
BOSTON (AP) — U.S. Sen. Elizabeth Warren is hailing new mortgage rules set to go into effect this week.
Warren said that under the new Consumer Financial Protection Bureau rules, lenders must determine that a borrower has the ability to repay a mortgage before issuing the loan.
The Massachusetts Democrat said the rules will prohibit brokers from being paid by lenders to steer customers into higher-cost loans and strengthen the mortgage market by improving mortgage servicing practices.
In remarks on the Senate floor Tuesday, Warren said the rules — which take effect Friday — will give consumers a better chance to buy and keep homes, and will force mortgage lenders and servicers to compete by offering better rates and customer service, not by “tricking and trapping people.”
Warren championed the creation of the bureau after the nation’s mortgage-led financial meltdown.