Alert April 16, 2013

CFPB Releases Small Entity Compliance Guide for the Ability-to-Repay and Qualified Mortgage Rules

The CFPB has released a compliance guide to assist small creditors in complying with the ability-to-repay and qualified mortgage rules finalized by the Bureau in January (see January 10, 2013 Alert). The guide is intended to be an "easy-to-use summary" of the ability-to-repay and qualified mortgage rules and highlights issues that small creditors may face when implementing the rules. The guide also provides practical implementation and compliance consideration for small creditors. For example, the CFPB notes that when mapping out a compliance plan, in addition to obligations under the rules, the compliance plan may: (1) identify affected products, departments and staff; and (2) identify the business process, operational and technology changes that will be necessary for compliance. The CFPB also released a chart comparing the ability-to-repay requirements with the requirements for originating qualified mortgage loans.