Infobytes Special Alert : CFPB Finalizes Additional Amendments ToThe Ability-To-Repay/Qualified Mortgage Rule And Other 2013 Mortgage Rules; Agencies Propose Amendments To Appraisal S Rule

On July 10, the Consumer Financial Protection Bureau (“Bureau”) finalized important amendments (the “Amendments”) to its ability-to-repay / qualified mortgage rule (the “QM / ATR Rule”) that are intended to ease certain compliance challenges with making qualified mortgages (“QMs”). In response to industry concerns on the extensive underwriting requirements in Regulation Z’s new Appendix Q, the Bureau acknowledged that certain of its provisions were “not well-suited to function as regulatory requirements” and, as a result, finalized major revisions to the methodology for determining a consumer’s monthly debt and income for purposes of making a QM under the 43% debt-to-income (“DTI”) underwriting alternative.

The Amendments, which had been proposed in April of this year (the “April Proposal”), also finalize clarifications to its mortgage servicing and escrows rules that were issued this January. Like the mortgage rules themselves, the Amendments will take effect on January 10, 2014.

Please see full Special Alert below for more information.

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

Topics:  Ability-to-Repay, Appraisal, CFPB, Qualified Mortgage Rule, Regulation Z

Published In: General Business Updates, Consumer Protection Updates, Finance & Banking Updates, Residential Real Estate Updates

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.

© BuckleySandler 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 »