Senate Bill 871, better known as the “Helping Expand Lending Practices in Rule Communities Act of 2015,” was recently introduced by Senators Mitch McConnell (R-KY), Dean Heller (R-NV), Shelley Moore Capito (R-WV), and Rand Paul (R-KY). This Bill would direct the Consumer Financial Protection Bureau (CFPB) to develop an application process under which a person who lives or does business in a state may apply to have an area identified as “rural” for the purposes of federal consumer financial law. The Bill also prescribes criteria for the CFPB to consider when evaluating an application. The “rural” designation allows creditors to treat balloon loans as “qualified mortgages” and exempts creditors from the escrow and impound account requirements governing certain consumer credit transactions secured by a first lien on a consumer’s principal dwelling. The House passed identical legislation (H.R. 1259) on April 13, 2015 by an almost unanimous vote of 401-1.
You can find Senate Bill 871 here.