WASHINGTON (6/25/13)--The Consumer Financial Protection Bureau (CFPB) promised future clarifications, if needed, when it issued its January 2013 mortgage rules and on Monday the agency delivered just that. The CFPB said its proposed clarifications and "narrow revisions" are intended to "ease implementation and pave the way for more effective consumer protections in the marketplace."
Among other things, the proposal amends and provides clarification on six major topics. These include:
- Facilitating the ability of servicers to offer short-term forbearance plans;
- Addressing the process for correcting errors or mistakes that may occur when servicers perform initial completeness evaluations of loss mitigation applications, but later discover the application was incomplete;
- Clarifying the definition of a loan originator;
- Facilitating lending by small creditors, including those in rural or underserved areas;
- Clarifying application of the prohibition on creditors financing credit insurance premiums; and
- Adjusting effective dates of several provisions of the loan originator rule.
The CFPB also finalized rules that strengthened consumer protections for high-cost mortgages, and instituted a requirement that escrow accounts be established for a minimum of five years for certain higher-priced mortgage loans.
Interested parties have only until July 22 to comment on the proposed clarifications. Use the resource link to read the CFPB's lengthy proposal.