By Nick Timiraos | The New York Times
Some of the nation’s largest banks will offer loans that don’t conform to new gold-standard lending definitions under sweeping mortgage regulations set to take effect next month, reversing course after industry leaders had earlier suggested that banks might further curtail lending.
Executives at Wells Fargo WFC +1.99% & Co., the nation’s largest mortgage lender, said the bank will make some loans that don’t meet the definition of a so-called qualified mortgage, a new designation that allows banks to demonstrate they have met requirements ensuring borrowers can afford their mortgages. J.P. Morgan Chase JPM +0.43% & Co., Bank of America Corp. BAC +0.84% , and Citigroup Inc. are also likely to make some loans that fall outside of the standard, according to bank representatives, although the loans are likely to be limited to affluent bank customers.
