The Consumer Financial Protection Bureau's (CFPB) corrections, clarifications and amendments to its Ability-to-Repay and mortgage servicing rules are now in place. The clarifications, first proposed in April, are designed to facilitating implementation in order to better protect consumers.
"We know that effective implementation helps our rules deliver their intended value to consumers," said CFPB Director Richard Cordray. "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 CFPB finalized several mortgage rules in January 2013. Of those, this latest rule focuses on the Ability-to-Repay and Servicing rules. The Ability-to-Repay rule protects consumers from irresponsible mortgage lending by requiring that lenders make a reasonable, good-faith determination that prospective borrowers have the ability to repay their loans. The mortgage servicing rules establish strong protections for homeowners as they repay their loans, and especially for those facing foreclosure.
The final rule: