Prohibited acts or practices in connection with high-cost mortgages.

CFR · 2024-01-01 · US · Title 12

(a) (i) By an instrument payable to the consumer or jointly to the consumer and the contractor; or (ii) At the election of the consumer, through a third-party escrow agent in accordance with terms established in a written agreement signed by the consumer, the creditor, and the contractor prior to the disbursement. (2) (3) (4) (i) (ii) (A) A creditor must verify amounts of income or assets that it relies on to determine repayment ability, including expected income or assets, by the consumer's Internal Revenue Service Form W-2, tax returns, payroll receipts, financial institution records, or other third-party documents that provide reasonably reliable evidence of the consumer's income or assets. (B) A creditor must verify the consumer's current obligations, including any mortgage-related obligations that are required by another credit obligation undertaken prior to or at account opening, and are secured by the same dwelling that secures the high-cost mortgage transaction. (iii) (A) Determines the consumer's repayment ability as provided in paragraph (a)(4)(ii); (B) Determines the consumer's repayment ability taking into account current obligations and mortgage-related obligations as defined in paragraph (a)(4)(i) of this section, and using the largest required minimum periodic payment based on the following assumptions: ( ( ( (C) Assesses the consumer's repayment ability taking into account at least one of the following: The ratio of total current obligations, including any mor

official document · source cfr-2024 · id 12:§ 1026.34