The CFPB may release its final ability-to-repay rule, which will include a definition of “qualified mortgage,” in conjunction with a field hearing planned for Thursday, Jan. 10, in Baltimore, according to press reports.
The rule will implement a Dodd-Frank Act requirement that creditors determine a consumer’s ability to repay a mortgage before making a loan. Because it will provide protections for what it defines as qualified mortgages, the rule is expected to have a significant impact on the future of mortgage lending.
ABA and a broad coalition have long advocated that the bureau structure its qualified mortgage as a legal safe harbor that properly shields lenders when they originate compliant loans. They also have urged the CFPB to craft a rule that encompasses a wide range of mortgage products and underwriting practices to protect credit availability.