WASHINGTON (4/11/13)--A "Small Entity Compliance Guide for the Ability-to-Repay and Qualified Mortgage Rule" is now available from the Consumer Financial Protection Bureau.
This is the first of a series of planned "plain language" compliance guides and other informational materials the CFPB plans to provide over the next few months on its new mortgage regulations.
The bureau has said the goal of the guidance series, including the Wednesday release, is to provide a comprehensive rule summary in a plain language and FAQ format, which makes the content more accessible and consumable for a broad array of industry constituents, especially smaller businesses with limited legal and compliance staff.
The CFPB issued standards to define a "qualified mortgage" under the agency's "ability to repay" rules in January. The rule amended Regulation Z, which implements the Truth in Lending Act, to require creditors to make a reasonable, good faith determination of a consumer's ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and establishes certain protections from liability under this requirement for "qualified mortgages."
The Credit Union National Association is reviewing the guide and will be following up with the CFPB on any issues of concern.
Use the resource link below to access the guide.