The CFPB has released a Comparison chart and Small Entity Compliance guide intended to help institutions understand the requirements of the Ability to Repay/Qualified Mortgage final rule. The Comparison chart illustrates the differences between the general ability to repay requirements and the requirements for originating qualified mortgage loans. While the Guide is in a Q&A format intended to be easier to read, the CFPB does not consider either the Chart or the Guide to be a suitable replacement for reading the rule itself.
You may have also seen the CFPB released another proposal intended to provide additional clarification on the Final Ability to Repay/Qualified Mortgage and Mortgage Servicing Rules. The proposal addresses the preemption of state laws; the determination of a small servicer, including when loans are serviced on a charitable basis; the government program eligibility status for certain loans to qualify as special qualified mortgages; and the requirements for qualified mortgages under Appendix Q. The proposal does not include any significant changes, but it could lessen the burden a little bit. I guess we’ll take what we can get, right? We will continue to monitor this proposal to see how and when it is finalized.