Ability-to-Repay: Regulating or Underwriting?

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Ability-to-Repay: Regulating or Underwriting? (Magazine Article)

I think you may be interested in reading my article in the June 2011 edition of National Mortgage Professional Magazine, entitled:

"Ability-to-Repay: Regulating or Underwriting?"

The article is Part I of a two-part magazine series.

As a courtesy I am sharing this magazine article with you.

I hope you enjoy reading it!

As you may know, on May 11, 2011, the Federal Reserve Board issued a proposed rule to implement ability-to-repay requirements for closed-end residential loans.

EXCERPT

Complying with the requirements of the ability-to-repay Rule is essential, because borrowers in a foreclosure proceeding will likely claim that the creditor failed to comply with the Rule as a defense by way of recoupment or set off, without regard to the normal statute of limitations under the Truth-in-Lending Act (TILA).

A violation of the Rule subjects the creditor to the TILA civil monetary penalties, plus the same enhanced civil remedies that apply to violations of TILA's high-cost loan rules, and TILA also would authorize state attorneys general to bring actions for violations of the Rule for a period of up to three years.

LINKS TO COMPLETE MAGAZINE ARTICLE

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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.

© Jonathan Foxx, Lenders Compliance Group | Attorney Advertising

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