CFPB Seeks To Facilitate Access To Credit In Rural And Underserved Areas

The Consumer Financial Protection Bureau yesterday proposed changes to its mortgage rules "to facilitate responsible lending by small creditors, particularly in rural and underserved areas," according to the CFPB press release. If finalized, the rule will increase the number of financial institutions able to offer certain types of mortgages in rural and underserved areas.

The proposed "Amendments Relating to Small Creditors and Rural or Underserved Areas Under the Truth in Lending Act (Regulation Z)" would —

• Expand the definition of “small creditor,”

• Include mortgage affiliates in calculation of small-creditor status,

• Expand the definition of “rural” areas,

• Provide grace periods for small creditor and rural or underserved creditor status,

• Create a one-year qualifying period for rural or underserved creditor status,

• Provide additional implementation time for small creditors.

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