New loan rules coming

Starting in January 2014, new rules implemented under the Dodd-Frank legislation will further tighten lending practices. According to a US News & World Report story, it is estimated that loans are already eight times more difficult to obtain than prior to the housing market collapse. These new rules which raise income to debt servicing requirements and require greater documentation of job and credit histories Some have estimated these new rules will impact between 10 and 50% of borrowers, including many with excellent credit scores. Those most likely to feel the impact include retires, first time home buyers and those that have had recent disruption in their job status.