CFPB Moves To Keep Mortgage Protections From Lapsing

Law360, New York (April 16, 2013, 5:20 PM EDT) -- The Consumer Financial Protection Bureau last week revamped recently released mortgage rules to ensure existing safeguards for borrowers don’t lapse before new provisions take effect next year while also clarifying how lenders can qualify for exemptions from escrow requirements.

Under the proposed rule issued Friday, current mandates that require banks to examine a borrower’s ability to repay higher-priced loans wouldn’t sunset on June 1, and would instead remain in place until January 10, when an expanded regime implementing Dodd-Frank Act requirements becomes active.

That extension would...
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