Lenders can skip the Consumer Financial Protection Bureau's ability-to-repay requirements when transferring mortgages from deceased borrowers to their next of kin, the bureau said Tuesday.

In January, the CFPB issued a sweeping regulation required under the Dodd-Frank Act imposing a new underwriting process for mortgages, including consideration of a borrower’s debt-to-income ratio. But the "interpretive rule" issued Tuesday essentially allows creditors to add successor borrowers, who have inherited the loan as the result of a family member’s death, without triggering the ability-to-repay requirements.

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