CFPB Finalizes Loan Originator Rules: BY CHARLES DAWSON, KEN TREPETA

CFPB Finalizes Loan Originator Rules

FEBRUARY 8, 2013

On Jan. 20, 2013, The Consumer Financial Protection Bureau (CFPB) published a final rule on Loan Originator Compensation as part of implementation of the Dodd-Frank Act.  The rule was designed to prevent abuses related to steering borrowers to loans with terms that are less advantageous than they could qualify for and specifically addresses seller financed transactions.  In comments to the CFPB, NAR had requested broader exemptions for seller financing than what the statue and proposed rule had outlined.  Though the CFPB’s final rule follows much of the statute, in response to NAR’s comments the Bureau made minor changes, such as a more flexible exemption for individuals that sell only 1 property in a 12-month period and not requiring proof of documentation of a borrower’s ability to repay.  NAR has published a complete summary of the final rule on Realtor.org, which takes effect on Jan. 10, 2014.

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David Ray

About David Ray

David provides viable solutions for sellers, buyers, real estate agents and investors. His areas of expertise include residential, commercial, business and land development. The latest solution is helping sellers with "dated" houses renovate the property for zero cost. Through this solution the seller, the buyer and the community all benefit. After each project is completed, he helps provide thousands of meals to the local food bank.

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