CFPB Final Rule – Inclusion of Loan Originator Compensation in Points and Fees and Qualified Mortgage Exceptions for Small Creditors
The Consumer Financial Protection Board issued final rules clarifying certain provisions relative to federal high-cost loans and the ability to repay/qualified mortgage provisions under Regulation Z. Specifically, the rules exclude compensation paid to a loan originator employee of a mortgage broker or creditor from the points and fees definition for purposes of determining whether a loan is a high-cost loan or a qualified mortgage. Additionally, the rules amend the ability to repay requirements for certain small creditors and exempt certain other creditors from the ability to repay requirements all together. These rules are effective January 10, 2014.