WASHINGTON, D.C. – May 1, 2014 – (RealEstateRama) — In response to public pressure, the Consumer Financial Protection Bureau (CFPB) announced adjustments to its mortgage rules to ensure access to credit for some nonprofit organizations. The proposal consists of two changes meant to help nonprofits continue to provide mortgage credit and servicing to underserved populations.
“I’m very pleased with CFPB’s decision to change these mortgage rules. It is so important that nonprofit groups that help provide responsible, low-income homeownership opportunities to families in need be able to have access to lines of credit,” Congressman Mark Meadows (R-NC) said.
“Nonprofits in my district—like Habitat for Humanity—were hit hard by these regulations intended to regulate big banks, credit unions and other traditional mortgage providers,” Meadows said, referring to theDodd–Frank Wall Street Reform and Consumer Protection Act.
“While there are differences of opinion on Dodd-Frank, I think everyone can agree that these mortgage rules were not intended to impact Habitat for Humanity. After working with my colleagues to introduce legislation to solve this problem and sending multiple letters to the CFPB, I am happy that they finally responded to Congress in reversing these rules. This change in policy will protect the organizations that serve those in need in my community and in communities across the nation. ”
In November 2013, Congressman Meadows introduced H.R. 3529, the Protecting Habitat Homeownership Act, which sought to achieve many of the goals laid out in today’s announcement and protect Habitat for Humanity from unnecessary and burdensome regulations.
You can read a full statement from CFPB on the rule change here.