Ability to Repay Documentation

The Ability to Repay requirements found in Regulation Z require lenders to make a good faith and reasonable determination of borrowers’ ability to repay a mortgage loan. Lenders must consider specific underwriting factors, use reasonably reliable third-party records to verify the information, and retain documentation. When it comes to your documentation, we have a tip for you.

Jerod explains more in the video.

Video Highlights:

• Ability to Repay documentation should be easily identifiable by auditors.
• Organizing the information neatly within the loan file helps auditors review it quickly.
• The goal is to see auditors get in and get out of your files quickly.

Published
2023/03/21