More than twenty months ago, the Board of Governors of the
Federal Reserve System (the "Board") first proposed a
rule amending Regulation Z to implement an expanded
ability-to-repay requirement and to define a "qualified
mortgage" in accordance with various Dodd-Frank Wall Street
Reform and Consumer Protection Act (the "Dodd-Frank Act")
amendments to the Truth in Lending Act ("TILA").
Responsibility for rulemaking with respect to Regulation Z passed
to the Consumer Financial Protection Bureau ("CFPB") on
July 21, 2011. On January 10, 2013, the CFPB completed the initial
phase of this rulemaking process by promulgating a final rule that
will fundamentally reshape the residential mortgage market (the
"2013 ATR Final Rule").1 Effective January 10,
2014, the 2013 ATR Final Rule (i) institutes a broad
ability-to-repay requirement applicable to virtually the entire
residential mortgage market, (ii) defines a new category of
"qualified mortgage" and (iii) establishes a
