PROTECTING BORROWERS FROM THE NEXT LENDING CRISIS: THE CFPB’S RULES ON ABILITY TO REPAY AND QUALIFIED MORTGAGES
Center for Responsible LendingJanuary 10, 2013 The Consumer Financial Protection Bureau’s new rules generally strike a balanced, reasonable approach to mortgage lending and implement important consumer protections. The standard CFPB establishes for a safe, well-underwritten mortgage is appropriately broad enough to include the vast majority of creditworthy home owners, and it is clear enough for lenders and borrowers alike to understand. And the rules preserve legal protection for borrowers with the riskiest loans. The rules—required by the Dodd-Frank Act of 2010—address head-on a