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Board of Governors of the Federal Reserve System

Consumer Affairs Letters

CA 13-15

Interagency Statement on Fair Lending Compliance and the Ability-to-Repay and Qualified Mortgage Standards Rule

October 22, 2013

Seal of the Board of Governors of the Federal Reserve System
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C.  20551
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
CA 13-15
October 22, 2013
TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS AND TO STATE MEMBER BANKS
SUBJECT:   Interagency Statement on Fair Lending Compliance and the Ability-to-Repay and Qualified Mortgage Standards Rule
Applicability to Community Banking Organizations: This guidance applies to all state member banks, including those with $10 billion or less in consolidated assets.

The Federal Reserve is issuing the attached Interagency Statement on Fair Lending Compliance and the Ability-to-Repay and Qualified Mortgage Standards Rule to clarify supervisory expectations regarding fair lending compliance and the Ability-to-Repay and Qualified Mortgage Standards Rule (Ability-to-Repay Rule), which implements provisions of the Truth in Lending Act.

The statement sets forth the issuing agencies'1 view that the requirements of the Ability-to-Repay Rule, the Equal Credit Opportunity Act (and its implementing regulation, Regulation B, 12 C.F.R. Part 1002), and the Fair Housing Act (and its implementing regulation, 24 C.F.R. Part 100) are compatible, and includes general principles intended to guide supervisory activities as the Ability-to-Repay Rule takes effect in January 2014.

This statement does not impose additional compliance or supervisory requirements on financial institutions or examiners, respectively.

Federal Reserve Banks are asked to distribute this letter and the accompanying statement to state member banks, as well as to supervisory and examination staff.  Questions on the attached guidance should be directed to Carol Evans, Assistant Director, at (202) 452-2051, or Amal Patel, Senior Supervisory Consumer Financial Services Analyst, at (202) 912-7879.  In addition, questions may be sent via the Board's public website.2 

signed by
Sandra F. Braunstein
Director
Division of Consumer and Community Affairs


 
Notes:
1.  The issuing agencies are the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Federal Reserve, the National Credit Union Administration, and the Office of the Comptroller of the Currency. Return to text

2.  See http://www.federalreserve.gov/apps/contactus/feedback.aspxReturn to text

Last update: September 5, 2014