CFPB Says Patch is Going Away but Asks “What Next?”

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Posted To: MND NewsWire

The Consumer Financial Protection Bureau (CFPB) has issued an Advance Notice of Proposed Rulemaking (ANPR) regarding the expiration of the so-called GSE Patch. The provision is scheduled to expire no later than January 10, 2021. As background, the Dodd-Frank Consumer Protection and Wall Street Reform Act amended the Truth in Lending Act (TILA) to establish, among other things, ability-to-repay (ATR) requirements in connection with the origination of most residential mortgage loans. TILA identifies the factors a creditor must consider in making a reasonable and good faith assessment of that ability including the consumer’s credit history, current and expected income, current obligations, debt-to-income (DTI) ratio, employment status, and other financial resources. A lender, however, may not…(read more)

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