Skip to main content
Menu Icon
Close

InfoBytes Blog

Financial Services Law Insights and Observations

CFPB Proposes Changes to Mortgage Rules for Small Lenders

CFPB Mortgage Origination Community Banks Qualified Mortgage Agency Rule-Making & Guidance

Lending

On January 29, the CFPB announced a proposed rule that would provide regulatory relief to more small lenders. Among other things, the proposed rule would (i) increase the loan origination limit to qualify for “small creditor” status from 500 loans to 2,000 loans annually; (ii) include certain mortgage affiliates in the calculation of small-creditor status; (iii) expand the definition of “rural” to include census blocks that are not in an urban area; and (iv) extend the transition period in which small lenders can make QMs with balloon payments, regardless of location, to April 1, 2016. Comments on the proposed rule are due by March 30.