Consumer Financial Protection Bureau (CFPB)

CFPB Releases Qualified Mortgage ANPR

 

The Consumer Financial Protection Bureau (CFPB) is soliciting comments on possible amendments to the Ability to Repay/Qualified Mortgage (ATR/QM) Rule. In particular, the CFPB is considering revising the current definition of a qualified mortgage under the Truth in Lending Act to use alternative methods to debt-to-income ratio to measure a consumer’s financial capacity. These considerations are prompted by the January 2021 expiration of rules in which certain mortgage loans eligible for purchase or guarantee by Freddie Mac or Fannie Mae, which do not otherwise meet the debt-to-income ratio requirements, fall under the current definition of qualified mortgage. Release.

CFPB Proposes to Provide Flexibility in Collecting Information

 

On March 24, 2017, the Consumer Financial Protection Bureau (“CFPB“) released a proposal to amend Equal Credit Opportunity Act regulations. The proposal would provide flexibility for lenders in collecting information about mortgage applicants’ ethnicity, race and sex. The CFPB’s proposal is meant to provide clarity to mortgage lenders regarding their obligations under the law and to promote compliance with rules intended to ensure that consumers are treated fairly. The proposal is open for public comment for 30 days after its publication in the Federal Register. Press Release. Proposal.