CFPB updates small entity compliance guides

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has updated three small entity compliance guides to reflect changes made by a recently issued interim final rule and by a final rule published last October. The interim final rule expands eligibility for the special provisions allowing certain small creditors to issue balloon-payment qualified mortgages and balloon-payment high cost mortgages, and exempting them from the escrow requirement for higher-priced mortgage loans.

The final rule, published Oct. 2, 2015, and effective Jan. 1, 2016, was entitled "Amendments Relating to Small Creditors and Rural or Underserved Areas Under the Truth in Lending Act (Regulation Z)." The rule made several changes to the CFPB's mortgage rules to facilitate responsible lending by small creditors, particularly in rural and underserved areas.

The CFPB updated some of its Title XIV implementation materials, including the small entity compliance guides, to bring them into alignment with these changes.

• Small entity compliance guide: "Ability-to-Repay and Qualified Mortgage Rule"
• Small entity compliance guide: "2013 Home Ownership and Equity Protection Act (HOEPA) Rule Guide"
• Small entity compliance guide: "TILA Higher-Priced Mortgage Loans (HPML) Escrow Rule"