The Consumer Financial Protection Bureau’s (CFPB) 2013 ability-to-repay rule gave lenders protection from liability for a specific class of loans known as qualified mortgages. Recently, the CFPB released a request for comment to revise the rule, which, despite its protections, gives borrowers a basis to sue. Last week, in one of the first true legal tests of the rule, an Ohio man who claimed his local bank had been negligent in verifying his income lost his case. This development may quell the fears of lenders who had previously worried about the ability-to-repay rule’s potential legal liabilities.

Read more via American Banker.