The CFPB has outlined their first draft of regulations to rein in payday loans. The proposal gives lenders two underwriting options designed to limit unsustainable debt. Under the first option, the lender would need to verify customers’ ability to repay by assessing income, other financial obligations and borrowing history. Under the second option, the lender would forgo those checks and accept safety limits on the loan products, including a $500 cap on loan size. Under this option, lenders would also be prohibited from rolling over loans more than two times during a 12-month period. The proposal would apply to payday loans as well as certain loans backed by car titles and some installment loans that stretch longer than 45 days.