Mon, Jul 22, 2013
Washington, District Of Columbia
The Consumer Financial Protection Bureau (CFPB) finalized corrections, clarifications, and amendments to its Ability-to-Repay and mortgage servicing rules that were proposed in April.
The clarifications are meant to address questions that have been posed in the months since the rules were first issued in January.
CFPB Director Richard Cordray said in a release, "We know that effective implementation helps our rules deliver their intended value to consumer. We are listening closely to feedback on our rules, and today's clarifications show our willingness to make appropriate adjustments to achieve that goal."
The final rule:
- Clarifies how to determine a consumer's debt-to-income (DTI) ratio;
- Explains that CFPB's Real Estate Settlement Procedures Act (RESPA) rule does not preempt the field of servicing regulation by states;
- Establishes which mortgage loans to consider in determining small servicer status for an exemption from some requirements; and
- Clarifies the eligibility standard of the temporary Qualified Mortgage provision under the Ability-to-Repay rule.
More plain language compliance resources and updates of official regulatory interpretations, examination procedures and other materials addressing CFPB mortgage regulations will be unveiled in the coming months, the CFPB has said.
Source: CUNA News Now