As nationalmortgagenews tells MHProNews, the Consumer Financial Protection Bureau (CFPB) has put in motion a new rule that expands lenders’ ability to originate qualified mortgages in rural and underserved markets. The agency’s final rule, which will take effect March 31, implements the Helping Expand Lending Practices (HELP) in Rural Communities Act.

In a news release, CFPB Director Richard Cordray said, “This rule provides broader eligibility for lenders serving those areas to originate balloon-payment qualified and high-cost mortgages.”

While the CFPB has previously pushed for more flexibility for community banks that operate in rural and underserved areas, the HELP Act expands the category of rural lenders that can qualify to originate loans under the Truth in Lending Act. ##

(Image credit: texaslendingtoday)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.