Skip to Content
Blog

CFPB Issues Ability-to-Repay Mortgage Rule

January 18, 2013

The Consumer Financial Protection Bureau (“CFPB”) has adopted a new rule aimed at protecting consumers from irresponsible mortgage lending by requiring lenders to ensure that prospective purchasers have the ability to repay their mortgage. Under the Ability-to-Repay rule announced by CFPB, new mortgages must satisfy basic requirements that protect consumers from taking on loans that are beyond their ability to repay. The rule is aimed at addressing risky mortgages such as “no doc” and “interest only” loans that contributed to many homeowners winding up in delinquency and foreclosure after the 2008 housing collapse.

The following are among the features of the new Ability-to-Repay rule: (1) financial information has to be supplied and verified; (2) a borrower must have sufficient assets or income to repay the loan; and (3) teaser rates can no longer be used to hide the true cost of a mortgage. The Ability-to-Repay rule is available at the CFPB’s website. A fact sheet explaining the new rule can also be accessed via CFPB’s website, as well as a summary of the Ability-to-Repay rule.

TALK TO US NOW
FOR FREE
No Win, No Fee
Martin & Jones, PLLC logo

“I would like to leave a testimonial thanking Steven and Allison for their care and understanding. Steven’s pursuit and success in getting some compensation for our loss. A final closure of our loss of brother Mike. Thanks to Martin & Jones for looking after Mike’s care since his injury in 2005. You have been there for Mike and his family for a long time. Mike passed in 2016 and you stood for the family up to the present (July 2017). Many thanks.”

Contact Our North Carolina Personal Injury Law Firm

for a Consultation for Your Accident or Medical Malpractice Claim

Call us at 800-662-1234
TALK TO US NOW
FOR FREE
No Win, No Fee

The law firm you choose makes a difference. If you are the victim of an accident or an illness that someone else caused, the North Carolina personal injury law firm of Martin & Jones has the depth of experience, skills and sensitivity to make your road to recovery as smooth as possible. Whether you have experience with the legal system or have never hired a medical malpractice or personal injury lawyer before, our attorneys and staff will do our best to answer your questions, provide clear advice and prepare you and your family for what to expect. If you would like more information or to meet with one of our attorneys, please fill out the form below or call us at 800.662.1234.