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January 11, 2013

Consumer Bureau Unveils New Rules to Prevent High-Risk Mortgages 
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The federal government has unveiled new restrictions on the high-risk
home loans that pushed millions into foreclosure and helped spark the
financial crisis. The Consumer Financial Protection Bureau announced new
rules Thursday forbidding lenders from issuing mortgages to those
ill-positioned to repay the loan and preventing inducements for
borrowers to take on crushing debt. In a statement, the bureau's
director, Richard Cordray, said: "To put it simply: Lenders should not
set up consumers to fail."

 

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