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Starting March 31, more lenders will qualify for small, rural crediting provisions, thanks to the Consumer Financial Protection Bureau’s new ruling announced Tuesday. according to the CFPB, the Bureau has officially moved to implement Congress’ recent HELP Act, which stands for Helping Expand Lending Practices in Rural Communities.
The act expands the guidelines for what small creditors are and will allow more lenders to take advantage of special lending provisions on CFPB mortgage rules set forth in January 2014. Since the initial implementation of these rules, the CFPB has made several moves to expand the definitions of small creditor and rural area, but before the HELP Act, smaller lenders were only eligible for special provisions if more than half its loans were in rural or underserved areas.
A survey on the impact of TRID on borrower and lender satisfaction conducted by the STRATMOR Group found that TRID is being well-received by borrowers but not so well by lenders. For borrowers, there is a significant level of satisfaction, around 90 percent, among those who have been contacted by their lenders about what the closing process will entail. Meanwhile, 31 percent of banks characterized their TRID experience as either difficult or terrible versus only 16 percent of independent lenders reporting similar results.
