Ability-to-repay Mortgage Rules Delayed by CFPB (Misc News: June 1, 2012)
The Consumer Financial Protection Bureau has delayed the release of a final version of its ability-to-repay mortgage rule until later this year and is asking for public comment on new data that could change how the agency designs the final rule.
According to CUNA News Now, under the still-developing rule, mortgage originators would be required to consider a homebuyer’s ability to repay their loan before a loan could be offered. The rule was scheduled to be released as a final version in July.
However, the CFPB decided to revisit elements of this rule after the Federal Housing Finance Agency provided information on the performance of loans purchased or guaranteed by Fannie Mae and Freddie Mac between 1997 and 2011, as well as information on other securitized mortgage loans.
Credit unions and other interested parties can comment on the new data and provide their own information on similar mortgage loans. The CFPB emphasized that it is only accepting public comment on the new data, and is not accepting comment on the ability-to-repay rule itself. The agency will accept public comment until July 9.