Calculating Debt-To-Income Ratios for the Ability-To-Repay Rules


Presented by: Mary Beth Guard and Jack Holzknecht                 
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The Consumer Financial Protection Bureau (CFPB) published a final rule to revise Regulation Z to require creditors to make a reasonable, good faith determination of a consumer's ability to repay (ATR) any consumer credit transaction secured by a dwelling. The rule was effective on January 10, 2014. Most of the seven options for verifying repayment ability include consideration of a debt-to-income ratio (DTI). But the various ATR options use different DTI calculation methods. This program explains all of the rules related to the calculation of debt-to-income ratios for purposes of verifying the consumer's repayment ability.

Upon completion of this program, participants understand:
  • Which of the seven repayment ability options require consideration of a debt-to-income ratio
  • The various methods of calculating debt-to-income ratios
  • What is included in debt
  • What rate assumption is used when calculating debt payment amounts
  • What is included in income
  • When and how income must be verified
  • When Appendix Q must be used
  • Much, much more.
Participants receive a detailed manual that serves as a handbook long after the program is completed

This two-hour program explains the final rules for calculating debt-to-income ratios for the ATR rules.

The program is designed for loan originators, underwriters, compliance officers and auditors and others with responsibilities for originating and auditing closed-end consumer credit transactions secured by a dwelling.

About the Speakers: Jack Holzknecht is a principal with Pegasus Educational Services, LLC. He has been delivering the word on lending compliance for 37 years. In 32 years as a trainer over 120,000 bankers (and many examiners) have participated in Jack's live seminars and webinars. Jack's career began in 1976 as a federal bank examiner. He later headed the form, software and education divisions of a regional consulting company. There he developed loan and deposit form systems and software. He also developed and presented training programs to bankers in 43 states. Jack has been an instructor at compliance schools presented by several state bankers associations. He developed and delivered compliance training for the FDIC for ten years. Jack is a Certified Regulatory Compliance Manager and a member of the National Speakers Association. He is also a "BOL Guru" at

Mary Beth Guard currently serves as Executive Editor of, CEO of Glia Group, Inc. and Executive Editor of Since graduating from law school in 1980, Mary Beth has focused her work almost exclusively on the banking industry. Previously, Mary Beth served as EVP/General Counsel and COO for the Oklahoma Bankers Association, EVP of Specialized Services for Thomson Financial Publishing, and General Counsel for the Oklahoma State Banking Department. Mary Beth is on the advisory board for Bankers' Hotline. She has presented training programs for virtually every major national financial industry association, as well as more than a dozen state bankers associations and a host of other organizations. In addition, Mary Beth has written more than a thousand banking-related articles and is a BOL Guru.

You have the right under this license agreement for this CD-ROM to use this presentation on a single-workstation. Use on a network is in violation of the copyright agreements. CD may be used by multiple users at a given institution but may not be placed on a network or in any other multi-user environment.

This program was recorded in its entirety in March 2014. The CD-ROM includes program slides, materials (if available) and follow-up Q & A document.

Add to Cart:

  • Model: cd_ratio0314
  • Manufactured by: Glia Group, Inc.

This product was added to our catalog on Tuesday 21 January, 2014.

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