WASHINGTON—The CFPB is conducting an assessment of its ability-to-repay/qualified mortgage rule and is requesting public comment on certain recommendations and information that may be useful in conducting it.
The Bureau plans to issue a report on this assessment by Jan. 10, 2019, NAFCU reported.
The Dodd-Frank Act requires the CFPB to review certain rules within five years after they take effect. Comments to the CFPB will be due 60 days after its request for information is published in the Federal Register. NAFCU said that it will issue a Regulatory Alert on this request.
In January 2013, the CFPB issued a rule titled “Ability-to-Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z)” to implement sections 1411, 1412, and 1414 of the Dodd-Frank Act. The rule went into effect on Jan. 10, 2014.
The ATR/QM rule prohibits a creditor from making a mortgage loan unless the creditor makes a reasonable and good-faith determination (based on a set of underwriting standards) that the consumer will have a reasonable ability to repay the loan, including any mortgage-related obligations (such as property taxes), NAFCU explained.
NAFCU noted that for the assessment, the CFPB is requesting public comment on the following:
- Comments on the feasibility and effectiveness of the assessment plan
- Data and other factual information that may be useful for the Bureau’s assessment plan
- Recommendations to improve the assessment plan, as well as data, other factual information and sources of data that would be useful to the assessment plan
- Data and other factual information about the benefits and costs of the ATR/QM rule for those in the mortgage industry
- Recommendations for modifying, expanding or eliminating the ATR/QM rule