HousingWire – Brena Swanson
An exception for certain small lenders who want to extend loans with debt-to-income ratios above the 43% qualified-mortgage threshold is just one part of the Consumer Financial Protection Bureau’s finalized Ability-to-Repay Rule (ATR) amendments. The CFPB released the finalized amendments Wednesday to create exceptions for small creditors, community development lenders and housing stabilization programs. "Our Ability-to-Repay rule was crafted to promote responsible lending practices," said CFPB Director Richard Cordray. "Today’s amendments embody our efforts to make reasonable changes to the rule in order to foster access to responsible credit for consumers." The bureau amended three distinct parts of the Ability-to-Repay rule. First, it created exemptions for certain nonprofit creditors. The amendments also attempt to facilitate lending among qualified small creditors while establishing a baseline for calculating loan origination compensation.