May 23, 2018

Tool Pinpoints Rural, Underserved Properties

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Tool Pinpoints Rural, Underserved Properties

A new tool launched this week by the Consumer Financial Protection Bureau allows creditors to enter a street address and city and ZIP to determine if the properties are located in a “rural” or “underserved” area based on qualifications that lenders use.

Read more: CFPB Makes Rural Mortgages Easier to Obtain

Earlier this year, the CFPB finalized changes to a mortgage rule that sets out to increase the number of financial institutions that will be able to offer certain types of loans in rural and underserved areas. The new rule will expand the definition of "small creditor," raising it from 500 first-lien mortgage loans to 2,000. Also, the rule expands the definition of "rural areas" to include Census blocks that are not in an urban area as defined by the Census Bureau.

"These changes will help consumers in rural or underserved areas access the mortgage credit they need, while still maintaining these important new consumer protections," CFPB Director Richard Cordray said at the time.

The new rule will take effect Jan. 1, 2016.

View the look up tool here.

Source: Consumer Financial Protection Bureau