The Consumer Financial Protection Bureau released a 45-page compliance guide for small banks and mortgage lenders to better understand how to comply with the "qualified mortgage" rule that requires lenders to ensure borrowers have the ability to repay a loan.
The guide, published on Wednesday, explains the minimum standards lenders must use to determine if consumers have the ability to repay a mortgage and meet the "qualified mortgage" requirements.
"The purpose of the guide is to provide an 'easy-to-use summary' of the rule highlighting specific issues that small lenders might find helpful, the CFPB says. The guide is a requirement of the Small Business Regulator Enforcement Fairness Act of 1996," writes American Banker's Kate Berry.
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