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Calculating Debt-To-Income Ratios for the Ability-To-Repay Rules

Recorded on March 04, 2014


The Consumer Financial Protection Bureau (CFPB) published a final rule to revise Regulation Z to require creditors to make a reasonable, good faith determination of a consumer's ability to repay (ATR) any consumer credit transaction secured by a dwelling. The rule was effective on January 10, 2014. Most of the seven options for verifying repayment ability include consideration of a debt-to-income ratio (DTI). But the various ATR options use different DTI calculation methods. This program explains all of the rules related to the calculation of debt-to-income ratios for purposes of verifying the consumer's repayment ability.


Upon completion of this program, participants understand:

  • Which of the seven repayment ability options require consideration of a debt-to-income ratio
  • The various methods of calculating debt-to-income ratios
  • What is included in debt
  • What rate assumption is used when calculating debt payment amounts
  • What is included in income
  • When and how income must be verified
  • When Appendix Q must be used
  • Much, much more.

Participants receive a detailed manual that serves as a handbook long after the program is completed


This two-hour program explains the final rules for calculating debt-to-income ratios for the ATR rules.


The program is designed for loan originators, underwriters, compliance officers and auditors and others with responsibilities for originating and auditing closed-end consumer credit transactions secured by a dwelling.

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