New mortgage rules in place to prevent foreclosures

January 10, 2014 12:17:57 PM PST
New mortgage rules take effect today and they're aimed at protecting borrowers from abusive lenders.

The new federal policies are designed at reducing defaults and foreclosures. Lenders must now make sure a borrower has the income to make payments throughout the life of the loan.

In addition risky features, like terms longer than 30 years, interest-only payments or too-small minimum payments are now banned.