To ensure that the ability-to-pay rule, as well as new rules for mortgage servicing, escrow accounts, high-cost mortgages, and compensation and qualifications for loan originators "deliver their intended value for customers," the Consumer Financial Protection Bureau (CFPB) recently proposed several modifications and narrow revisions to these rules that are designed to provide clarity to lenders and other concerned parties, according to a press release from the bureau (see our February 13, 2013, blog post for more information). The proposed changes serve to:

  • Outline procedures for obtaining follow-up information on loss-mitigation applications
  • Facilitate servicers' offering of short-term forbearance plans
  • Facilitate lending in rural or underserved areas
  • Make clarifications about financing of credit insurance premiums
  • Clarify the definition of a loan originator
  • Clarify the points and fees thresholds for manufactured housing employees
  • Revise effective dates of Loan Originator rule and ban on financing of credit insurance

For more, including a copy of the proposal, read the full press release.