Ability-to-Repay
Amongst other changes, the Dodd-Frank Act amended Regulation Z, which implemented the Truth-in-Lending Act (TILA). These changes prohibit lenders from providing mortgage loans without first assessing the borrower's ability-to-repay (ATR). As a result, the Consumer Financial Protection Bureau (CFPB) published a final rule outlining eight key underwriting factors that lenders must take into consideration prior to issuing credit.
#4
#2
#1
#3
Monthly payment on any simultaneous loan
Current employment status
Current or reasonably expected income or assets
Monthly payment on the covered transaction
#5
#7
#6
#8
Monthly payment for mortgage-related obligations
Monthly debt-to-income ratio or residual income
Current debt obligations, alimony, and child support
Credit history
Ability-to-Repay
LCE
Created on February 27, 2024
Start designing with a free template
Discover more than 1500 professional designs like these:
View
Halloween Infographic
View
Halloween List 3D
View
Magic and Sorcery List
View
Journey Map
View
Versus Character
View
Akihabara Connectors Infographic Mobile
View
Mobile mockup infographic
Explore all templates
Transcript
Ability-to-Repay
Amongst other changes, the Dodd-Frank Act amended Regulation Z, which implemented the Truth-in-Lending Act (TILA). These changes prohibit lenders from providing mortgage loans without first assessing the borrower's ability-to-repay (ATR). As a result, the Consumer Financial Protection Bureau (CFPB) published a final rule outlining eight key underwriting factors that lenders must take into consideration prior to issuing credit.
#4
#2
#1
#3
Monthly payment on any simultaneous loan
Current employment status
Current or reasonably expected income or assets
Monthly payment on the covered transaction
#5
#7
#6
#8
Monthly payment for mortgage-related obligations
Monthly debt-to-income ratio or residual income
Current debt obligations, alimony, and child support
Credit history