CFPB Issues New Rule For Determining Underserved Areas

CFPB building. Credit: Getty Images/JHVEPhoto

The Consumer Financial Protection Bureau issued an interpretive rule to provide guidance to creditors and other persons involved in the mortgage origination process about the way in which the CFPB determines which counties qualify as “underserved” for a given calendar year.

Eric C. Peck
 & 
June 23, 2020

The Consumer Financial Protection Bureau issued an interpretive rule to provide guidance to creditors and other persons involved in the mortgage origination process about the way in which the CFPB determines which counties qualify as “underserved” for a given calendar year.

The CFPB’s annual list of rural and underserved counties and areas is used in applying various provisions under Regulation Z, which implements the Truth-in-Lending Act. These provisions include the exemption from the requirement to establish an escrow account for a higher-priced mortgage loan and the ability to originate balloon-payment qualified mortgages and balloon-payment, high-cost mortgages.

Read more about the CFPB's new rule for determining underserved areas.

This article originally appeared in the National Mortgage Professional print magazine.

Eric C. Peck is senior editor of National Mortgage Professional magazine and editor-in-chief of the National Mortgage Professional Magazine website.

Eric C. Peck is senior editor of National Mortgage Professional magazine and editor-in-chief of the National Mortgage Professional Magazine website.

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CFPB Issues New Rule For Determining Underserved Areas
Compliance

CFPB Issues New Rule For Determining Underserved Areas

June 23, 2020
by
Eric C. Peck

The Consumer Financial Protection Bureau issued an interpretive rule to provide guidance to creditors and other persons involved in the mortgage origination process about the way in which the CFPB determines which counties qualify as “underserved” for a given calendar year.

The CFPB’s annual list of rural and underserved counties and areas is used in applying various provisions under Regulation Z, which implements the Truth-in-Lending Act. These provisions include the exemption from the requirement to establish an escrow account for a higher-priced mortgage loan and the ability to originate balloon-payment qualified mortgages and balloon-payment, high-cost mortgages.

Read more about the CFPB's new rule for determining underserved areas.

Written by 
Eric C. Peck

Eric C. Peck is senior editor of National Mortgage Professional magazine and editor-in-chief of the National Mortgage Professional Magazine website.

ericp@ambizmedia.com

These articles are powered by National Mortgage Professional

The Consumer Financial Protection Bureau issued an interpretive rule to provide guidance to creditors and other persons involved in the mortgage origination process about the way in which the CFPB determines which counties qualify as “underserved” for a given calendar year.

The CFPB’s annual list of rural and underserved counties and areas is used in applying various provisions under Regulation Z, which implements the Truth-in-Lending Act. These provisions include the exemption from the requirement to establish an escrow account for a higher-priced mortgage loan and the ability to originate balloon-payment qualified mortgages and balloon-payment, high-cost mortgages.

Read more about the CFPB's new rule for determining underserved areas.

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