*UPDATE* The Consumer Financial Protection Bureau (CFPB) revealed its ability-to-repay and qualified mortgage guidelines, creating two types of qualified mortgages with different legal liability standards. The ability-to-repay final rule will take effect in January 2014.
Key ‘Qualified Mortgage’ Rule Expected Soon (Original post published on 1/9/2013)
The Consumer Financial Protection Bureau (CFPB) may release its final ability-to-repay rule, which will include a definition of “qualified mortgage,” in conjunction with a field hearing planned for Thursday, Jan. 10, in Baltimore, according to press reports.
The rule will implement a Dodd-Frank Act requirement that creditors determine a consumer’s ability to repay a mortgage before making a loan. Because it will provide protections for what it defines as qualified mortgages, the rule is expected to have a significant impact on the future of mortgage lending.
Read the full article: ABA Dodd-Frank Tracker