Politics & MoneyMortgage

What is the Ability-to-Repay rule without DTI?

CFPB proposes replacement to debt-to-income ratio

young couple with lender HW+

In mid-January, the Consumer Financial Protection Bureau quietly sent a letter to Congress, stating that it planned to propose an amendment to the Qualified Mortgage rule that moves away from using the debt-to-income ratio requirement in mortgage underwriting.

The bureau determined it will move on from the DTI requirement in search of an alternative, such as a pricing threshold. There are several options being floated as possible alternatives, but the industry has been firm in their stance against the DTI requirement. And CFPB Director Kathy Kraninger is taking the industry’s views on this issue.

What is the Ability-to-Repay rule without the DTI threshold? If originators aren’t looking at one’s income, can they truly determine if a borrower can repay their loan? The answer is simple: yes.

The rest of this content is for HW+ members. Join today with a HW+ Membership! Already a member? log in

Most Popular Articles

FHA, VA join Fannie, Freddie in relaxing some standards

With the coronavirus continuing to reshape the face of the country and the economy, the biggest players in the mortgage business are moving to try to make it easier to lend. Last week, it was Fannie and Freddie. Now, it’s the FHA and VA’s turn.

Mar 30, 2020 By

Latest Articles

Jobless claims double to all-time high

The number of people seeking unemployment benefits more than doubled from the prior week’s eye-popping number as Americans continued feeling the economic pain from the COVID-19 pandemic.

Apr 02, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please