The Consumer Financial Protection Bureau (CFPB) has finalized clarifications to its ability-to-repay and mortgage servicing rules, including notes on calculating a borrower's debt-to-income ratio. The clarifications, which apply to rules taking effect in January 2014, are meant to help bankers determine what loans will be considered a "qualified mortgage." The finalized ability-to-repay rule requires a borrower to have, aside from other factors, a debt-to-income ratio not exceeding 43 percent in order to meet this standard. The CFPB clarified, however, that the ratio can include other incomes from the borrower, including a business credit report or rental property. The bureau also created a temporary outlet for loans to be a qualified mortgage if they are eligible for purchase, guarantee, or insurance by the government-sponsored enterprises and meet other requirements. Finalized changes to the CFPB's servicing rule also includes outlining which mortgages are included in an exemption for small servicers.
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