On July 11, 2014 the Consumer Financial Protection Bureau (CFPB) released a 10-page rule that clarifies that where a successor-in-interest (successor) who has previously acquired title to a dwelling agrees to be added as obligor or substituted for the existing obligor on a consumer credit transaction secured by that dwelling, the creditor’s written acknowledgement of the successor as obligor is not subject to the Ability-to-Repay Rule (ATR Rule), § 1026.43, because such a transaction does not constitute an assumption as defined by Regulation Z.
The rule is effective immediately. The CFPB plans to incorporate this interpretation into Regulation Z’s Official Interpretations at a later date.
A copy of the rule is available here.