CFPB Issues Revised TILA Regulations Relating To Creditors And Rural Areas

On September 21, the CFPB issued its revised Truth in Lending Act regulations (Regulation Z) relating to creditors and rural or underserved areas. The CFPB's final rule revised the regulatory definitions of small creditor, and rural and underserved areas, for purposes of certain special provisions and exemptions from various requirements provided to certain small creditors under the CFPB's mortgage rules. For example, the Ability-to-Repay rule extends Qualified Mortgage status to loans that small creditors hold in their own portfolios. Small creditors that operate predominantly in rural or underserved areas can originate Qualified Mortgages with balloon payments, even though balloon payments are otherwise not allowed with Qualified Mortgages. The Final Rule will:

Create a one-year qualifying period for rural or underserved creditor status. Provide additional implementation time for small creditors. Expand the definition of "small creditor": The final rule expands the loan origination limit for small-creditor status to 2,000 first-lien mortgage loans and excludes loans held in portfolio by the creditor and its affiliates. Include mortgage affiliates in calculation of small-creditor status: The final rule does not change the $2 billion asset limit for small-creditor status, and assets of a creditor's mortgage-originating...