Responsible Lending... What a Concept...!!!

Fannie Mae and Freddie Mac have both updated their seller guides to incorporate the Consumer Financial Protection Bureau’s Ability to Repay Rule under the Truth in Lending Act.

The rule will go into effect January 10, 2014.

The Federal Housing Finance Agency (FHFA) worked with the GSEs to update their respective seller guides in alignment with one another.

The basic goal of the “Ability to Repay” rule is to ensure lenders act in good faith that a borrower can repay his or her loan before offering the loan.