Consumer Financial Protection Bureau Implements 'Ability to Repay' Regulations for Covered Mortage Loans

more+
less-
more+
less-

It is a widely understood that loose underwriting standards and practices by some creditors – including their abject failure in some instances to confirm their borrowers’ ability to repay mortgage loans – contributed in large measure to the mortgage crisis in 2008 that led to the nation’s most serious recession since the Great Depression.

In response to this crisis, Congress enacted several significant pieces of legislation, including the 2010 Dodd- Frank Wall Street Reform and Consumer Protection Act (the Dodd- Frank Act). To combat loose underwriting standards, the Dodd-Frank Act included certain ability-to-repay requirements applicable to virtually all closed-end residential mortgage loans, which were adopted primarily as amendments to the Federal Truth in Lending Act (the TILA). The Dodd-Frank Act amendments to TILA also contained presumptions of compliance with the ability-to-repay standard for certain qualifying mortgage loans.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Shumaker, Loop & Kendrick, LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×