In two new reports, the Consumer Financial Protection Bureau ("CFPB") assessed the impact of the Ability to Repay / Qualified Mortgage ("ATR/QM") Rule and the Real Estate Settlement Procedures Act ("RESPA") Mortgage Servicing Rule. The rules took effect in January 2014.

The ATR/QM Rule (i) requires a mortgage lender to assess a borrower's ability to repay ("ATR") a mortgage loan, (ii) sets standards for classifying QM loans and (iii) establishes criteria and requirements for lenders to evaluate the ability of consumers to repay loans under the ATR requirement.

In one report, the CFPB found, among other things, that:

  • the introduction of the rule did not correlate with an enhancement in loan performance;
  • there are certain parts of the market where the rule may have impacted access to credit: (i) borrowers with high debt to income ratios, (ii) self-employed borrowers and (iii) borrowers looking for smaller loan amounts;
  • the spread between the average interest rate on 30-year fixed-rate mortgages over the corresponding U.S. Treasury rate has stayed constant since the rule's implementation;
  • in response to a lender survey, respondents noted that their business model has altered due to the rule; and
  • the evidence is not uniform as to whether the rule has increased the price of non-QM loans.

The RESPA Mortgage Servicing Rule provides borrowers with consumer protections with respect to mortgage loan servicing. According to the CFPB, the protections were largely aimed at assisting consumers who were having difficulty making mortgage payments. The CFPB found, among other things, that:

  • after 2010, borrowers who became delinquent were more likely to recover from their delinquency and avoid foreclosure; and
  • loans that became delinquent were less likely to continue to foreclosure sales during the months after the rule's effective date.

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