On Wednesday May 29, 2013, the Consumer Financial Protection Bureau (CFPB) finalized rules to facilitate access to credit by creating specific exemptions and modifications to the CFPB’s Ability-to-Repay rule for small creditors, community development lenders, and housing stabilization programs. The amendments also revised rules on how to calculate loan origination compensation for purposes related to the 3% cap on fees and points in the QM rule.
As expected the CFPB did not address other issues related to the 3% cap such as counting loan level price adjustments, affiliate title fees, and escrow for insurance towards the 3% cap. Nevertheless, the CFPB did moderate the elements of the rule it felt it had the authority to address in this rulemaking.
NAR will continue to work to enact H.R. 1077 and S. 949, The Consumer Mortgage Choice Act in order to ensure consumers have the broadest access to credit and services they need.