This story appeared in Bank Digest.
The Federal Reserve Board has proposed amendments to Reg. Z--Truth in Lending (12 CFR 226) that would set out how residential mortgage lenders would be required to determine a consumer's ability to repay a mortgage. The proposal would define what are termed “qualified mortgages” and also set minimum underwriting standards for many mortgages. The proposed amendments, which are required by the Dodd-Frank Act, also would implement limits on prepayment penalties and attempt to prevent lenders from evading the rules.
Continue reading "Comments on Reg. Z Ability-to-Repay Regulations" »