On April 10, 2013, the CFPB published a compliance guide for the Ability to Repay (ATR) and Qualified Mortgage(QM) Rule. Their goal is to provide the comprehensive rule summary in an easy to read plain language and FAQ format. If your institution originates closed-end residential mortgage loans, you may find these resources helpful.
The final rule sets forth the following:
- Ability to Repay Determinations
- Presumption for Qualified Mortgages
- General Requirements for Qualified Mortgages
- Rural Balloon-Payment Qualified Mortgages
- Prepayment Penalty Restrictions
- Record Retention Requirements
The effective date of the rule is January 10, 2014.