Community Banks Gain a Reprieve on Balloon Mortgages Community banks with less than $2 billion in assets, and which originate fewer than 500 mortgage loans a year, have received a regulatory dispensation that will allow them to continue offering a certain type of home mortgage loan that tends to be popular in rural markets. In May, the Consumer Financial Protection Bureau (CFPB) amended the ability-to-repay standards in the Truth in Lending Act to create a fourth category of qualified mortgages that will permit these lenders to continue to offer balloon-payment mortgages over a two-year transition period. The newly revised ability-to-repay...
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