According to Matthew Yglesias at Slate (see URL below), a new rule "requires lenders to make a reasonable, good-faith determination that a mortgage borrower will be able to repay a loan that’s offered."
In theory, this should help prices drop, no longer allowing people to "pay" what they can't afford for a house.
Will it be effective in lowering prices to what people can afford? If so, how long should it take to cause that adjustment?
claireh is moderator of this thread.
Watch comments by email
questions or suggestions? write firstname.lastname@example.org