You may or may not know about a rule lenders have to adhere to - it's called the “ability to repay rule” better known as ATR. Part of that rule says you have to CONFIRM that the borrower's income will continue for at least the next 3 years. Standard stuff that applies to everyone, right? Well, Freedom Mortgage did just that, followed the ATR, and apparently got fined by HUD for asking a disabled person to provide something to confirm that his disability income would continue for at least 3 years. No joke. Yep, Freedom Mortgage had to pay a fine for doing their best to make sure they were meeting ATR. Can you believe HUD did this, telling us that Freedom Mortgage was unfairly discriminating against a disabled person by following ATR? This sounds like a big foul on this one HUD. This is just one example of the rules that are coming about from the CFPB (Consumer Finance Protection Bureau). What do you think about this? Is this consumer protection, or agency interference?
This information courtesy Frank Garay and Brian Stevens of the National Real Estate Post.