adminEarlier this year, the CFPB offered revisions to Reg Z’s definition of small creditor, and rural and underserved areas, under the Truth in Lending Act (Rule). The revisions were officially listed in the Federal Register today. The Rule becomes effective Jan. 1, 2016 and it also makes technical changes and clarifications to other sections of Reg Z.
One of the major revisions is the expansion of the definition of “rural area” that a creditor uses to determine if it is operating predominantly in rural or underserved areas. The Rule expands the definition of “rural area” to include either: a county that meets the current definition of a rural county; or a census block that is not in an urban area as defined by the U.S. Census Bureau.
Another revision is the raising of the loan origination limit for determining eligibility for small creditor status from 500 first-lien covered transactions to 2,000 first-lien covered transactions.
Read a news release from the CFP on all of the revisions on its website.
