The CFPB has published with the Federal Register for public comment an interim final rule establishing Regulation D  or the Alternative Mortgage Transaction Parity.

This is pursuant to the Alternative Mortgage Transaction Parity Act (AMTPA) and the Truth in Lending Act.

The interim final rule will be in place as a stopgap measure pending the CFPB’s completion of a notice-and-comment rulemaking to promulgate permanent rules, such as those governing alternative mortgage transactions made by federally chartered housing creditors.

The CFPB is seeking public comment ahead of this process. Comments must be received on or before Sept. 22.

The interim final rule is needed to avoid a regulatory gap created by the amendments to AMTPA in the Dodd-Frank Act.

The CFPB explained that without an interim final rule that takes immediate effect, the state housing creditors will be unable to make variable rate mortgage loans as well as other alternative mortgage deals pursuant to AMTPA in states that do not allow such transactions. This will thus prevent consumers from having access to that form of credit, the CFPB explained.

This interim final rule is effective until July 22. The CFPB said that it will apply only to state housing creditors wanting to invoke federal preemption of state law under AMTPA. 

For a full version of the published interim rule, please click this link.

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