The Regulation's Text can be read by clicking here.
The Preamble's Text can be read by clicking here.
The regulation lays out 8 factors for a creditor to consider in making an Ability to Repay analysis, including:
- Current or reasonably expected income or assets;
- Current employment status;
- The monthly payment on the covered transaction;
- The monthly payment on any simultaneous loan;
- The monthly payment for mortgage-related obligations;
- Current debt obligations, alimony, and child support;
- The monthly debt-to-income ratio or residual income; and
- Credit history.
Additionally, these factors must be verified by use of reasonably reliable third-party records.
Further analysis of the Regulation will be available on this blog in the days and months to come.