The cost of a 'high-cost' mortgage just went up, making fewer loans risky

The Consumer Financial Protection Bureau adjusted the dollar amounts that define certain risky loans. This means fewer mortgages and credit cards will fall under special consumer protections.

Every year, the government adjusts the thresholds for what counts as a 'high-cost' mortgage or a risky credit card. When these thresholds go up, fewer loans trigger extra protections for consumers. This makes it easier for lenders to offer loans without the added compliance burden, which can mean more loans get approved, but also that more consumers take on loans that might have been considered too risky in previous years.