Bureau of Consumer Financial Protection: Ability-to-Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z)
GAO-13-405R: Mar 4, 2013
- Full Report:
GAO reviewed the Bureau of Consumer Financial Protection's (Bureau) new rule on the ability-to-repay and qualified mortgage standards under the Truth in Lending Act (Regulation Z). GAO found that (1) the final rule implements sections 1411 and 1412 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which generally require creditors to make a reasonable, good faith determination of a consumer's ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and establishes certain protections from liability under this requirement for "qualified mortgages"; and (2) the Bureau complied with the applicable requirements in promulgating the rule.