A Detailed Summary of the CFPB’s Final Ability to Repay Rules

— July 2013
The Consumer Finance Protection Board (CFPB) issued a final rule on January 10, 2013
(the “ATR rule”) which amended Regulation Z under the Truth in Lending Act (TILA) in
accordance with the Dodd Frank Wall Street Reform and Borrower Protection Act (Act)
and created new TILA Section 129C. TILA Section 129C established new ability-to-repay requirements in making a mortgage loan, prohibiting a lender from making a residential mortgage loan unless the lender makes a reasonable and good faith determination, based on verified and documented information, that the borrower has a reasonable ability to repay the loan according to its terms…