This is a great question. Bloomsberg Business Week has a great short article about this. Lenders must now verify and document at least eight specific criteria, including income, assets, credit history, other debt obligations, and employment status, to determine whether a borrower has a reasonable chance of repaying the loan. If the lender doesnâ€™t do all that, a homeowner who has trouble repaying the loan has grounds for a lawsuit. As for how this will affect the real estate market? This will be better for everyone because there won't be the quickly inflated prices and then bursting real estate bubbles.