According to Reuters, the government's consumer finance watchdog said on January 10, 2013, it will force banks to use new criteria to determine whether a borrower can repay a home loan, in an effort to avert the kind of loose lending that helped push the economy into recession. Banks will have to verify a potential borrower's income, the amount of debt they have, and their employment. The Consumer Financial Protection Bureau (CFPB) said its new guidelines would also protect borrowers from irresponsible mortgage lending by providing some legal shields for lenders who issue safer, lower-priced loan products.
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