The Consumer Financial Protection Bureau (CFPB) is seeking public comment on new data and information that it has received in a rulemaking to require lenders to assess consumers' ability to repay mortgage loans before extending them credit. The notice to reopen the comment period is available HERE, and the comment period will close on July 9.
The notice seeks comment on the data, and requests similar information regarding other types of mortgage loans. It also seeks data on the relationship between ability to repay and other potentially relevant factors, such as borrowers' cash reserves. In addition, the notice summarizes analysis and information that the CFPB has received about the potential risk of litigation in connection with the new requirements and seeks additional data from the public about this issue.
The notice is focused narrowly on these data issues and does not reopen comment on other aspects of the proposed rule. The CFPB expects to issue the final rule before the end of this year; the rule is required under the Dodd-Frank Act by January 2013.
‘Through our ability-to-repay rule, we want to ensure that consumers are not set up to fail with mortgages they cannot afford, and we want to protect access to affordable credit,’ says CFPB Director Richard Cordray. ‘We are committed to gathering solid data to inform this important rule. This notice gives the public an opportunity to comment on the information we have received so far, as well as an opportunity to submit additional data.’