CFPB should increase relief in ‘rural’ definition rule

first_imgThe Consumer Financial Protection Bureau’s (CFPB) proposal regarding rural and underserved areas is a positive step, but CUNA urged the agency to take further regulatory relief steps, in a comment letter filed Monday.The CFPB in January proposed a broader definition of “small” credit union and bank, as well as an expanded designation for what comprises a “rural” area.  If finalized, the proposal would, in part, increase the number of financial institutions able to offer certain types of mortgages in rural and underserved areas by exempting more small creditors from the CFPB’s tough new mortgage rules.CUNA generally supports the proposal, calling the bureau’s overall approach “positive and appreciated.”However, CUNA offered a number of changes to make the proposal more favorable toward credit unions and other small servicers.This includes providing favorable regulatory relief to creditors that manage their lending programs, in addition to the thresholds of asset size and loans originated. This could be achieved by considering the default rates on covered loans, CUNA suggests.CUNA also recommends the small creditor thresholds, which can exempt institutions from certain requirements under Regulation Z (which implements the Truth in Lending Act), be analyzed. The new threshold proposed by the CFPB would raise the thresholds to 2,000 loans originated in a year, up from 500. continue reading » 3SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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