CFPB “Ability-to-Repay” standard

January 2013

At a glance

CFPB “Ability-to-Repay” standard

The CFPB issued the final “Ability-to-Repay” rule. Lenders have 12 months to implement the new requirements which become effective January 10, 2014.

An analysis of the Consumer Financial Protection Bureau’s Ability-to-Repay and “Qualified Mortgage” rule

On January 10, 2013, the Consumer Finance Protection Bureau (CFPB) issued its much anticipated final “Ability-to-Repay” rule. Lenders have 12 months to implement the new requirements, which become effective January 10, 2014.

To provide some insights as to the Ability-to-Repay rule, we summarize the key provisions of the rule, identify some possible impacts of those provisions; and describe some specific steps lenders can take to successfully adapt to the new rule.

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