2013 Ability-to-Repay and Qualified Mortgage Assessment Report
The Dodd-Frank Wall Street Reform and Consumer Protection Act requires the Bureau of Consumer Financial Protection (Bureau) to review some of its rules within five years after they take effect. These formal reviews are called assessments. The Bureau’s 2013 Ability-to-Repay and Qualified Mortgage Rule took effect on Jan. 10, 2014, and this report publishes the findings of the Bureau’s assessment of the Rule. In general, the Ability-to-Repay and Qualified Mortgage Rule requires creditors to make a reasonable, good faith determination of a consumer’s ability to repay a loan based on verified and documented information before issuing a residential mortgage loan. In its assessment, the Bureau used both its own research and external sources to evaluate the effectiveness of the Rule in meeting (1) the purposes and objectives of the Bureau and (2) the specific goals of the Rule as stated by the Bureau prior to the Rule’s effective date.