They say that the rules brought on by the Consumer Financial Protection Bureau go too far in insisting that lenders verify borrowers ability to pay.
A new government agency called the Consumer Financial Protection Bureau has been created to protect consumers from predatory lending practices. As with every government act, it goes too far.
There is something called the qualified mortgage designation which is really tough. In fact it covers even people doing their own owner financing so you have to be aware of it. Lenders are concerned that the rules are so tough that it makes any loan that is not to the letter of the law will be considered sub prime. That means they can’t sell the loan.
Some of the new rules outlaw interest only payments,negative amortization, and balloon payments.
As an investor, you need to be aware of these rules. They really make it harder to owner finance.