Which Lenders Do Not Assess Ability-To-Repay?

This video and article explain which organizations are exempt from ability-to-repay laws when handling mortgages.

While most lenders are required to assess a borrower’s ability to repay a mortgage, a few types of agencies and organizations are not. These include:

  • State Housing Finance Agencies
  • Community Housing Development Organizations
  • Community Development Financial Institutions
  • Downpayment Assistance Providers

In addition, some not-for-profit companies making relatively few home loans are exempt.  Federal loans, like this made under, the Emergency Economic Stabilization Act, might be exempt.

Mortgages laws are designed to help customers and lending institutions avoid risk. If you need to check on a lending institution’s right to be exempted from Ability-to-Repay, inquire with the Consumer Financial Protection Bureau online, or by telephone at (855) 411-2372.

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