The Consumer Financial Protection Bureau is pushing for greater access to mortgage credit in rural and underserved areas by attempting to increase the number of financial institutions in the space.
Currently, there are few players in the rural lending space, which is something the CFPB would like to see changed with the proposed rulemaking.
If successful, the CFPB hopes this new expansion will help small creditors adjust their business practices to comply with the new rules.
The bureau made sure to emphasize the need to maintain responsible lending while still ensuring that consumers are protected.
“Responsible lending by community banks and credit unions did not cause the financial crisis, and our mortgage rules reflect the fact that small institutions play a vital role in many communities,” said CFPB Director Richard Cordray. “Today’s proposal will help consumers in rural or underserved areas access the mortgage credit they need, while still maintaining these important new consumer protections.”