Removing Barriers Blog

CFPB Issues Mortgage Origination Interpretive Rule & FAQ
Posted April 29, 2020 by dyi

The CFPB issued an interpretive rule and FAQ document regarding flexibility for its mortgage origination requirements. The actions taken address the TRID Rule’s 3-day waiting period requirements, Regulation Z’s consumer recession rights, and the ECOA and Regulation B’s appraisal and written valuation requirements in light of the COVID-19 pandemic.

According to the Bureau, these actions “will reduce regulatory uncertainty and allow creditors to focus their resources on meeting consumers’ needs.”

The interpretive rule clarifies that consumers can exercise their rights to modify or waive certain required waiting periods under the TILA-RESPA Integrated Disclosure Rule and Regulation Z rescission rules.

The FAQ document addresses when creditors must provide appraisals or other written valuations to mortgage applicants under the ECOA Valuations Rule for consumers affected by the COVID-19 pandemic.

CUNA sent letters to the Bureau both in March and earlier this month specifically recommending these areas be addressed in order to facilitate member access to credit. These recommendations were reiterated by CUNA CEO Jim Nussle in conversations with CFPB Director Kathy Kraninger.