Skip to content

Comment deadline on CFPB interim final rule

04/25/2016
Status: 

The CFPB issued an interim final rule on March 22, 2016, to dramatically lower the requirements for meeting the key "rural or underserved" criterion for small creditors, making it possible for many small creditors to continue making qualified mortgage balloon-payment loans, just days before many of those creditors would no longer be able to make balloon-payment loans as "QMs." The Bureau acted under the Helping Expand Lending Practices in Rural Communities (HELP) Act, enacted in December 2015. Effective March 31, 2016, the interim final rule will replace the current "rural or underserved" test -- which requires that more than half a creditor's first-lien covered transactions be made in rural or underserved areas -- with a requirement that the creditor made one such loan in a rural or underserved area in the previous calendar year (or, if an application is received before April 1, in either of the previous two calendar years). Comments on the interim rule will be accepted for 30 days following its publication in the Federal Register (scheduled for March 25, 2016). The amendments, which affect section 1026.35(b)(2) of the regulation, and the commentary to sections 1026.35(b)(2) and 1026.43(f), have been posted in our Regulations pages.

Penalties View All

Compliance Deadlines

By Status