New lending regulations will affect small banks
The Consumer Financial Protection Bureau has developed new rules that will affect mortgage lending for small banks in the state.
Most of the new rules will go into effect in January 2014.
The Ability-to-Repay rule will require mortgage lenders to go to greater lengths to document and verify a borrower's ability to repay a loan.
Balloon payments will prohibited, with some exceptions.
Coverage of the Homeownership and Equity Protection Act of 1994 will be expanded. The law requires greater disclosures to borrowers for high-interest loans.