On November 3, 2014, the Consumer Financial Protection Bureau ("CFPB") amended certain mortgage rules issued in 2013 to address areas of concern that have been raised by lenders and policymakers. The amendments: (1) provide an alternative "small servicer" definition for nonprofit entities to allow nonprofit entities to maintain their exemption from various servicing rules; (2) amend the exemption from the ability-to-repay rule for nonprofit entities by extending the exemption to nonprofit entities that meet certain requirements; and (3) provide a cure mechanism for the points and fees limit that applies to qualified mortgages in order to address lenders' concerns about underwriting a Qualified Mortgage and then later finding out it exceeded the points-and-fees cap.
The first two of these amendments aim to help certain nonprofit organizations continue to provide mortgage credit and servicing to underserved populations. The third amendment is designed to encourage lenders to provide access to credit to consumers seeking loans that are at or near the points and fees limit.
Learn more about these amendments at: