CFPB has issued an interpretive rule to clarify that when a borrower dies, the name of the borrower’s heir generally may be added to the mortgage without triggering the Bureau’s Ability-to-Repay rule.
In its interpretive ruling, the Bureau wrote: “The Bureau is issuing this interpretive rule to clarify that where a successor-in-interest (successor) who has previously acquired title to a dwelling agrees to be added as obliger or substituted for the existing obliger on a consumer credit transaction secured by that dwelling, the creditor’s written acknowledgement of the successor as obliger is not subject to the Bureau’s Ability-to-Repay Rule (ATR Rule) § 1026.43, because such a transaction does not constitute an assumption as defined by Regulation Z § 1026.20(b).”