United States

Statement on Fair lending compliance and the ATR


The federal regulatory agencies issued an interagency statement in response to inquiries from creditors about whether they would be liable under the disparate impact doctrine of the Equal Credit Opportunity Act by originating only QMs as defined under the Bureau's recent Ability-to-Repay Rule. According to the statement, the Agencies “do not anticipate that a creditor's decision to offer only Qualified Mortgages would, absent other factors, elevate a supervised institution's fair lending risk.” The agencies view the situation as not substantially different from the past when significant regulatory changes affected particular types of loans. As an example, the statement reminds us that some creditors decided not to offer "higher-priced mortgage loans" after July 2008, when rules regulating those loans were implemented. To view the fair lending/ATR statement, please see: http://www.fdic.gov/news/news/press/2013/pr13091a.html.