This site uses cookies to improve your browsing experience, gather site analytics and activity, track shopping cart contents, and deliver relevant marketing information.
View our privacy policy and manage your settings here. By using our site you agree to these terms.

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