The Consumer Financial Protection Bureau Finalizes the Ability-To-Repay and Qualified Mortgage Rule

The Consumer Financial Protection Bureau Finalizes the Ability-To-Repay and Qualified Mortgage Rule
by Jennifer Hadley Dioguardi

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) amended the Truth in Lending Act (TILA) to provide for an expanded ability-to-repay requirement for the mortgage lending industry. The Consumer Financial Protection Bureau (CFPB) was tasked with developing the necessary rulemaking to amend Regulation Z. On January 10, 2013, the CFPB issued the highly anticipated final ability-to-repay rule requiring lenders to verify a consumer’s ability to repay a mortgage loan and defining a “qualified mortgage” (Final Rule). The Final Rule becomes effective on January 10, 2014.

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