The Consumer Financial Protection Bureau published reports assessing the effectiveness of its Ability to Repay and Qualified Mortgage Rule and its mortgage servicing rule.
The Ability to Repay and Qualified Mortgage Rule was established in January 2013 as part of the Dodd-Frank Act to require lenders to determine if the consumer has a reasonable ability to repay the loan.
The CFPB also issued the Real Estate Settlement Procedures Act (RESPA) Mortgage Servicing Rule in January 2013, which imposed new obligations on mortgage servicers to carry out the consumer protection purposes of RESPA.
The Dodd-Frank Act requires the bureau to assess each rule it generated after five years. The assessment must address the effectiveness of the rule in meeting the purposes and objectives of the Dodd-Frank Act. The assessment of the Ability to Repay and Qualified Mortgage Rule examined how it has affected consumers’ access to credit and the cost of credit. The assessment of the mortgage servicing rule examined how it affected the experiences and outcomes for consumers, with a particular focus on those who fall behind on their mortgage payments. The assessments do not include a cost-benefit analysis, but it may in the future.
The findings in these reports will inform stakeholders, policymakers, and the general public about developments in the mortgage market and the effects of the rules on consumers. The reports can be found at www.consumerfinance.gov. The bureau is interested in hearing reactions from stakeholders to the findings.