The CFPB yesterday proposed several clarifications to its ability-to-repay and mortgage serving rules.
The clarifications address, among other things, eligibility issues surrounding the exemption for small servicing operations and standards for determining a consumer’s debt-to-income ratio. The proposal also clarifies what standards a creditor must meet when using GSE and federal agency underwriting guidelines to determine qualified mortgage status.
The CFPB noted that it plans to propose additional clarifications to the servicing and other rules in June.
While ABA welcomed the clarifications, the association also is concerned that the CFPB’s proposal, which triggers a comment-and-review cycle, may delay further clarity as bankers work to comply with regulations by January 2014.