Yes! One of the biggest changes in the proposed bill that will affect mortgages is that "Liar Loans" are banned. These loans allowed buyers to "state" their income without any independent verification of the income. A segment of the buying public was served by these loans IF they were used under the right circumstances.
If the reform bill passes, lenders will have to document a borrower's income BEFORE originating a mortgage and verify a borrower's ability to repay the loan. The fear of a repeat of the mortgage industry "meltdown" will keep "stated" loans unavailable for many years to come.
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