[rcooper]

“The Payday Lending Rule became effective on January 16, 2018. However,the Rule’s compliance date for the payment-related requirements is August 19, 2019. Thus, by its terms,the Rule does not require lenders to comply with the Rule’s payment-relatedrequirementsuntil August 19, 2019. See 12 CFR 1041.15. The compliance date, however, is currently stayed pursuant to a court order issued in Community Financial Services Association v. CFPB, No. 1:18-cv-00295 (W.D. Tex. Nov. 6, 2018). As a result, lenders have no obligation to comply with the Rule until the court-orderedstay is lifted.” – CFPB Small Entity Compliance Guide, p. 8, https://files.consumerfinance.gov/f/documents/cfpb_payday_small-entity-compliance-guide.pdf

Here’s an article Jack did on the topic in July when the CFPB published the final rule and related materials: https://mycomplianceresource.com/final-payday-lending-rule-published/.

[Todd H.]

The CFPB recently published materials on the Payday Lending Rule and it is somewhat confusing. Within these materials, it refers to certain effective dates but I was under the impression that due to the pending court ordered stay between the CFSA v. CFPB in Texas, there still is no compliance effective date for this rule. Is that correct or are there certain provisions that we should be following?

[jholzknecht]

The two major requirements of the Payday rule are the Underwriting and the Payment provisions, both of which are delayed by the stay.

[TheBank]

Does the stay on the Payday Lending rule apply to the entire regulation, or only the underwriting portion?

[jholzknecht]

Compliance Resource published a blog article entitled Payday Loan Rules Apply to You – Are You Ready? The article is available here.

[tressa]

Need clarification concerning the real estate exclusion. Section 1041.3(d)(2) states that credit secured by any real property, or by personal property used or expected to be used as a dwelling, and the lender records or otherwise perfects the security interest within the term of the loan is excluded under the rule. My question is what about refinanced real estate where the mortgage is recorded during the term of the loan being refinanced?
Example:
Loan A is secured by real estate and the mortgage is recorded – excluded under the Rule
Loan B refinances Loan A – Loan B is secured with the same mortgage that was recorded during the term of Loan A

Is Loan B excluded from the Rule or is it considered a covered loan?