Effective Date: January 10, 2014
The Ability-to-Repay/Qualified Mortgage Final Rule mandates an ability-to-repay analysis for closed-end mortgage loans, prohibits certain loan terms and conditions, and creates several types of Qualified Mortgages that require pricing and terms generally favorable to borrowers along with offering lenders a presumption of compliance with the rule.
On September 13, 2013, the CFPB issued a Final Rule amending several provisions of Regulations B, X, and Z scheduled to take effect in January 2014. Some of the updates related to this Final Rule include:
- Clarifying and revising the definition of points and fees for purposes of the qualified mortgage points and fees cap and the high-cost mortgage points and fees threshold, as adopted in the 2013 ATR Final Rule and the 2013 HOEPA Final Rule, respectively. In particular, adding commentary to § 1026.32(b)(1)(ii) to clarify for retailers of manufactured homes and their employees what compensation must be counted as loan originator compensation and thus included in the points and fees thresholds. Also adding commentary to clarify the treatment of charges paid by parties other than the consumer, including third parties, for purposes of the points and fees thresholds.
January 2013 CFPB Full Rule with Final Rules Amending Provisions in May 2013, July 2013, and September 2013
Small Entity Compliance Guide for Ability-to-Repay and Qualified Mortgage Rule
General Comparison Chart of Ability-to-Repay Requirements with Qualified Mortgages
CFPB Video Presentation for Ability-to-Repay and Qualified Mortgage Rule
Issued: January 10, 2013
Published: January 30, 2013
Effective date: January 10, 2014
CFR parts: 12 CFR 1026
Page count: 1516