Ability to Repay and "Qualified Mortgage" Exemption

The Consumer Financial Protection Bureau on January 10, 2013, issued final regulations implementing provisions in the Dodd-Frank Act that require all creditors to determine a consumer's ability to repay a mortgage before making a loan. The final rule includes a “qualified mortgage” standard broad enough to encompass most current types of mortgages. It also provides "safe harbor" legal protection to most qualified mortgages.

ABA's Position 

ABA and a broad coalition of groups involved in housing strenuously advocated that the bureau structure its qualified mortgage as a legal safe harbor (rather than a less reliable "rebuttable presumption") that properly shields lenders when they originate compliant loans. They also urged the CFPB to craft a rule that encompasses a wide range of mortgage products and underwriting practices to protect credit availability.






 Comment Letters


 Letters to Congress/Regulators




 Additional Resources

For further information, contact Rod J. Alba

 ABA Staff Contact

  • Rod Alba, Sr. Vice President, ABA  Mortgage Fin/Sr. Regulatory Counsel

 ABA Resources