Tabs

Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
 
Qualified Mortgage - Qualified Residential Mortgage
Swaps
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Capital
Deposit Insurance
Interchange
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Preemption
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Appraisals
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Monday, January 14, 2013

Escrow Rule’s ‘Rural’ Definition Affects QM Rule

Some questions have arisen about how the term “rural” is being defined for purposes of certain allowable balloon mortgage loans under the ability-to-repay and “qualified mortgage” (QM) rule that the CFPB issued last week.

The rural definition is laid out in the separate rule on escrow accounts that the CFPB also issued last week. The definition of “rural” in the escrow rule will be a common definition affecting escrow for higher-priced loans under the Home Ownership and Equity Protection Act (HOEPA) and also balloon mortgages under the QM rule.

Under that rule, the definition will apply if a creditor extended more than 50% of its total first-lien “covered transactions” on properties in counties designated as either “rural” or “underserved.” A county is defined as rural “if it is neither a metropolitan statistical area nor a micropolitan statistical area that is adjacent to a metropolitan statistical area,” as defined by the Office of Management and Budget.

No comments:

Post a Comment

Please read our comment policy before making a comment.