Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
CFPB Releases Escrow Rule Tweaks, Clarifications
WASHINGTON (4/15/13)--Proposed clarifications and technical amendments to the Consumer Financial Protection Bureau's new escrow regulations were issued by the agency on Friday.

The CFPB's escrow rule, issued in January, generally extends the required duration of a mortgage loan escrow account to five years, up from one year. Lenders that work in rural or underserved areas will be exempt from the escrow changes, provided they meet certain other criteria. The proposals issued Friday would not substantially alter this rule.

One of the proposed clarifications is intended to ensure that an existing rule that provides protections regarding assessments of consumers' ability to repay and prepayment penalties on certain "higher-priced" mortgage loans remains in effect until January 2014.

A CFPB release explains that portions of its January escrow rule, as currently written, "can be read to cut off the old protections before the new expanded protections take effect." Such a reading could result in a six-month gap where consumers would not be adequately protected, the agency said.

The proposals also further clarify how the agency determines whether or not a county is considered "rural" or "underserved" for exemption purposes. A preliminary list of CFPB-approved rural and underserved areas, covering counties in 46 states and Puerto Rico, was released last month. (Use the resource link to read March 14 News Now story: Small Creditor Escrow Relief Previewed By CFPB.)

Credit Union National Association staff will review the proposed rule, and the CFPB said it will accept comment on the proposal for 15 days after it is published in the Federal Register.

Additional guidance and clarifications on other mortgage regulations will be released later this month, the CFPB said.

For the full CFPB release, use the resource link.
RSS





print
News Now LiveWire
#NewsNow Washington DFI adds 'S' to CAMEL rating http://t.co/8OFaN21Vkz
7 minutes ago
How the '78 #blizzard in NY pushed the popularity of #ATMs http://t.co/Y7Own4ekzY #WinterStormJuno
1 hour ago
#NewsNow Chicago Tribune column: CU membership worth the switch http://t.co/OtGQeS0IpM
1 hour ago
As expected, @TheNCUA #RBC2 plan is in today's Federal Register. Comment deadline is April 27. Proposal here: http://t.co/d80aXrRi9e
2 hours ago
Through the snow, be on the lookout for a @CU4Kids @CMNHospitals @COOPFS billboard in @TimesSquareNYC this week
18 hours ago