By Benjamin Goad - 10/22/13 02:50 PM EDT
By then, the agency reasons, financial institutions would be in the midst of a holiday season crush and would have little time to adjust to regulations churned out via the normal rule-making process.
Unveiled in January, the rules are designed to halt the risky lending practice blamed as a major contributor to the economic crisis of the late 2000s. The rules are meant to provide various protections to ensure borrowers have the wherewithal to pay back their loans.
The new guidance, detailed here, amends provisions requiring consumers to receive counseling before taking on high-cost mortgages.
The CFPB is also clarifying the rules for how banks should conduct early intervention actions when borrowers fall behind on their loans – especially in cases when a homeowner has filed for bankruptcy or has sent the servicer a “cease communication” request under the Fair Debt Collection Practices Act.
The rule takes effect on Jan. 10. Interested parties and members of the public have until late November to weigh in.