On January 29, 2015, the CFPB proposed amendments to its mortgage rules to better accommodate responsible lending by small creditors, particularly in rural and underserved areas. If the rules are finalized as proposed, a greater number of financial institutions would be able to offer certain types of mortgages in rural and underserved areas. Among other things, the amendments would: (i) expand the definition of a small creditor; (ii) include mortgage affiliates in the calculation of smallcreditor status; (iii) expand the definition of “rural” areas; and (iv) provide grace periods for small creditor status. The proposed rules will be open for public comment until March 30, 2015.
The proposal is available at: http://files.consumerfinance.gov/f/201501_cfpb_amendments-relating-to-small-creditors-and-ruralor-underserved-areas.pdf.