The CFPB issued a proposal to clarify and revise several mortgage rules scheduled to take effect in January 2014, including the delayed rule prohibiting financing of credit insurance premiums. The proposal addresses provisions related to:
- The process for gathering additional information on loss mitigation applications that are determined to be incomplete after the initial review is already performed;
- Providing short-term forbearance plans to borrowers needing temporary relief;
- The definition of loan originator, including clarification of what activities performed by clerical or administrative staff fall under the definition;
- Exemptions intended to facilitate lending by small creditors, including those operating primarily in rural or underserved areas;
- Clarification about the prohibition on financing credit insurance premiums, what constitutes financing, and when credit insurance premiums calculated and paid on a monthly basis may be charged; and
- The effective dates of several Loan Originator rule provisions, moving them from January 10 to January 1 to facilitate compliance activities that occur on an annual basis.
Comments on the proposal must be submitted by July 22.