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CFPB Tweaks Mortgage Rules

June 28, 2013

On Monday, June 24, 2013, the Consumer Financial Protection Bureau (CFPB) issued proposed changes to the Qualified Mortgage (QM), Loan Officer Compensation, and Mortgage Servicing rules among others.  The proposal would expand the rural exemption on balloon payment loans to small creditors in general with certain limitations.  It also clarifies that tellers and other employees of large banks are not loan officers for purposes of the LO comp rule. It also clarifies servicing provisions relating to loss mitigation and short term forebearance arrangements.  It addresses issue with manufactured housing lending and the QM rule.  Finally it makes the effective date for the Loan Officer Compensation rule January 1, 2014 instead of January 10, 2014 to reduce confusion.  The proposal does not address the discrimination against affiliates and small and mid-size loan originators in the definition of fees and points in the QM.  Comments are due July 22, 2014.  NAR will continue to work to enact H.R. 1077 and its Senate companion S. 949 in order to ensure consumers have the broadest access to credit and services they need.

CFPB Proposal