Consumer Financial Protection Bureau (CFPB) wants to limit the “back-end” ratio on loans to 43 percent of total income.
National Association of Realtors (NAR) is lobbying against a range of new regulations including this limit. NAR argues all the new regulations will restrict the flow of credit to prospective home buyers.
I agree with CFPB on the income cap issue as long as “income” is not loosely defined and some form of responsible lending exists – some form of limit on bad loans will only make people wait until they can afford the good loans and be good risks.
What do you think – should there be a reasonable limit – and what should that limit be?