The Consumer Financial Protection Bureau issued a final rule that implements Sections 1411 and 1412 of the Dodd-Frank Act, generally requiring creditors to make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling and establishes certain protections from liability if a “qualified mortgage” is made. In addition, the final rule implements Section 1414 of the Dodd-Frank Act, which limits prepayment penalties. Finally, the rule establishes a record retention requirement of three years after a covered loan is consummated to document a creditor’s compliance with the final rule. The final rule becomes effective on January 10, 2014. To view this final rule, click here.