1-22-13: No-Doc No More?

You are missing some Flash content that should appear here! Perhaps your browser cannot display it, or maybe it did not initialize correctly.

Rossi-0122.mp3

The mortgage lending of the 21st century’s first decade is still causing misery in the second. Low-doc, no-doc, subprime, balloon payments—as the big banks expanded our vocabulary, they also expanded the number of Americans approved for loans they had no ability to repay.

Now there’s a new incentive for banks to underwrite only loans they know borrowers can repay, thanks to a rule released earlier this month by the federal Consumer Financial Protection Bureau. The rule is 804 pages long. We’re going to try and sort it out in eight minutes.

Sheilah talks to Clifford Rossi, executive-in-residence and Tyler Teaching Fellow at the University of Maryland Robert H. Smith School of Business.

Here are some thoughts on the rule from various watchdog agencies:

- Center for Responsible Lending
- National Fair Housing Alliance
- Maryland Consumer Rights Coalition

See lots more of Maryland Morning's coverage of the housing mess here and here.

You are missing some Flash content that should appear here! Perhaps your browser cannot display it, or maybe it did not initialize correctly.

Rossi on CFPB's foreclosure rule