The CFPB has released a Final Rule providing technical corrections and clarifications to the previously issued Final HPML Escrow Rule, which is effective June 1st.
The Final Rule provides clarification on determining a county’s rural or underserved status and “restores” the HPML ability to repay requirements and prepayment penalty restrictions to §1026.35 as of June 1st through January 9, 2014. Similar requirements and restrictions will then be incorporated into other sections.
While the CFPB intends for creditors to make the rural and/or underserved designation, we’re guessing most will rely on the CFPB’s list as a safe harbor. The only time we see a creditor not being able to rely on the CFPB list is in the case of a new county. The CFPB clarifies in this final rule that new counties may be considered rural only if all the land making up the new county comes from previously designated rural counties. The Rule also clarifies that in determining underserved status, an institution can rely on the most recent HMDA data available.
In addition, a final list of counties deemed to be rural or underserved has been published by the CFPB. This final list appears identical to the preliminary list previously released. The CFPB has indicated that any updates as a result of the 2010 census will be reflected in the 2014 list. Essentially, there were no unanticipated changes with this final rule, so on to June 1st!
Diane joined Banker’s Compliance Consulting with over 10 years of compliance experience and over 15 years of experience within the financial industry. Diane is a Certified Regulatory Compliance Manager (CRCM) and has a Bachelor’s Degree in Sociology with a concentration in Criminal Justice. She is a graduate of the Schools of Banking Compliance School and has participated in various other training opportunities throughout her career. Diane understands firsthand the struggles banks face in building and maintaining successful compliance programs. Her experience and common sense approach to consumer compliance is a great asset to our clients.
Diane and her husband have two kids who keep them busy. She enjoys running and other sports and is a big Bugs Bunny fan! She’s a bit crazy in that she does enjoy reading some of these regulations and she’s a “crazy cat lady!” Her cat tales are hilarious!