Modifications to new mortgage rules scheduled to take effect next year are being welcomed by both mortgage bankers and consumer advocates.

The Consumer Financial Protection Bureau said the amendments to the “Ability-to-Repay” rule will exempt certain nonprofit and community-based lenders who work with low- and moderate-income homebuyers, while facilitating lending by small creditors including community banks and credit unions that have less than $2 billion in assets and make 500 or fewer mortgage loans a year.

The Center for Responsible Lending said the final rules “strike the right balance,” by prohibiting mortgages with higher fees from being classified as a “qualified mortgage,” while tailoring standards for small lenders who hold home loans in their portfolios.

The Mortgage Bankers Association issued a statement saying it was “particularly pleased” at adjustments made to accommodate small lenders, along with a stipulation that compensation mortgage brokers and lenders pay to loan originator employees does not count toward the points and fees threshold.

“While obviously there is more we would have liked to have seen done, particularly around the points and fees calculation, I think today’s announcement shows that the bureau is trying to appropriately balance consumer protection with access to affordable credit for qualified borrowers,” MBA CEO David Stevens said in a statement. Source: consumerfinance.gov.

 

Back to top
The best event in real estate kicks off next week! Tickets are selling quickly.Register Now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription