|May 28, 2013|
Previously published on May 24, 2013
The CFPB issued a final rule amending the 2013 Escrows Final Rule that was previously issued in January 2013.
The 2013 Escrows Final Rule, effective on June 1, 2013, in part removes certain regulatory text regarding requirements concerning the assessment of a consumer’s ability to repay an HPML and associated prepayment penalty limits. Such requirements and limitations, however, are being expanded through the 2013 Title XIV Final Rules which are not to take effect until January 10, 2014. Thus, the CFPB’s most recent amendment to the 2013 Escrow Final Rule extends the referenced requirements and limitations until January 10, 2014 -- when the Title XIV Final Rule becomes effective -- in order to avoid a potential six-month regulatory gap in providing those protections.
The amended final rule also serves to clarify how creditors are to make a determination with respect to whether a county qualifies as “rural” or “underserved” since certain exemptions in the 2013 Escrows Final Rule are contingent upon this determination. Accordingly, the CFPB has provided illustrations to assist in making such determination and has also published a final “2013 rural or undeserved counties list” that creditors may rely on when making such determinations for loans made from June 1, 2013 through December 31, 2013.