Richard Sweum : Ability to Repay Standards (Reg Z) 

So, what determines "1" borrowers ability to repay a loan verses another borrower?  If you assign a few actuaries to the task (math nerds who love to make correllations), I think we would run afoul of about every piece of "fairness" legislation that has ever been written.  Two incomes is better than one...sorry single people!  Lutefisk eaters are notorious for the poor management of money...sorry Norwegians.  Old people...well, we know you're not going to repay the mortgage, you'll likely die before the loan matures.

When the government enters the world of "underwriting risk" they don't have a clue, and we all should be a little worried!! 

Ability To Repay Standards Under the Truth in Lending Act (Regulation Z)

The Bureau of Consumer Financial Protection (Bureau) is proposing to amend Regulation Z, which implements the Truth in Lending Act (TILA). This proposal is related to a final rule published elsewhere in today's Federal Register. That final rule implements sections 1411, 1412, and 1414 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which creates new TILA section 129C. Among other things, the Dodd-Frank Act requires creditors to make a reasonable, good faith determination of a consumer's ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and establishes certain protections from liability under this requirement for “qualified mortgages.” The Bureau is proposing certain amendments to the final rule implementing these requirements, including exemptions for certain nonprofit creditors and certain homeownership stabilization programs and an additional definition of a qualified mortgage for certain loans made and held in portfolio by small creditors. The Bureau is also seeking feedback on whether additional clarification is needed regarding the inclusion of loan originator compensation in the points and fees calculation.

Richard Sweum : Ability to Repay Standards (Reg Z) 

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