This week, the Consumer Financial Protection Bureau (CFPB) issued finalized clarifications and amendments to various mortgage rule provisions to reflect changes proposed in April. The amendments cover Qualified Mortgage standards and Servicing requirements under Regulation Z and Regulation X.
The final rule clarifies eligibility standards for the temporary GSE Qualified Mortgage category, and it provides exclusions from the repayment ability and prepayment penalty requirements for higher-priced mortgages. It also amends appendix Q of Regulation Z, which provides factors to use when determining a borrower’s ability to repay, to remove requirements to predict a borrower’s future employment and substantiate job qualifications.
Servicing rules are also clarified and amended. The final rule clarifies small servicer exemptions, including which types of loans are considered in determining small servicer status, and implementation dates for adjustable rate reset disclosures. In addition, the rule provides that the RESPA rule does not preempt the field of servicing regulation by states, meaning that servicers will be required to comply with more stringent state laws that provide additional protections for consumers.
Read More: The Final Rule