October 22, 2016

CFPB Looks to Expand ‘Rural’ Designated Areas

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CFPB Looks to Expand ‘Rural’ Designated Areas

The Consumer Financial Protection Bureau announced that it is launching a new application process that could add more “rural” areas under its federal consumer financial law for mortgage lending. The application process will start March 31.

Read more: Tool Pinpoints Rural, Underserved Properties

The agency will accept applications for areas outside rural counties or census blocks to be considered as rural. If eligible, these areas may be suitable for certain exemptions and provisions from certain mortgage lenders.

“This step will allow the Bureau to consider whether there are smaller institutions that merit a designation as ‘rural’ lenders but do not qualify under current guidelines,” says Richard Cordray, CFPB’s director. “The Bureau is taking quick action to fulfill out responsibility to Congress and implement the law.”

To request a rural designation, applicants will be required to identify the area and provide information to help CFPB evaluate the application under the Helping Expand Lending Practices in Rural Communities (HELP) Act. The application process is open until Dec. 4, 2017.

View CFPB’s amendment in its entirety at its website.

Source: Consumer Financial Protection Bureau