Additional Mortgage-Rule Amendments Expected Soon

Consumer Financial Protection Bureau (CFPB) Director Richard Cordray told lenders this week that they should expect additional changes to the mortgage-lending rules the bureau finalized last January.

“We issued one set of amendments over the summer and expect to issue a second set any day now,” Cordray told the American Mortgage Conference. “We have made these adjustments with one aim in mind: to ensure the effectiveness of our rules by making it easier for industry to comply.”

He did not release specific details of the changes.

The CFPB worked closely with credit unions before finalizing its initial mortgage-lending rules. Specifically the bureau created a small-lender exemption for the Debt to Income Ratio requirements for credit unions under $2 billion that originate less than 500 mortgages per year.

“The bureau recognized that credit union lending practices remained sound, even leading up to the economic crisis, says John Trull, director of regulatory advocacy for the Northwest Credit Union Association. “The Association has advocated for many of the changes that CFPB has made, and we appreciate the bureau’s willingness to engage with credit unions and adopt the changes that credit unions have requested.”

Trull says that while lenders appreciate additional flexibility to better serve consumers, some are concerned about rule changes issued so close to the January 2014 implementation date.

“We’d like the bureau to consider the time and resources that go into implementing final rules, and the disproportionate impact on smaller lenders when changes are made to a final rule,” says Katie Clark, NWCUA’s regulatory analyst. “Credit unions have been working on implementing these rules since they were finalized in January. They’ve already created work plans, contacted vendors, rewritten policies and procedures, and developed staff training.”

If necessary, Trull says, NWCUA may seek an extension of the implementation deadline.


Questions? Contact Gary Stein: 503.350.2216,

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