CFPB Publishes 2013 Listing of “Rural” and “Underserved” Counties

The CFPB has issued a final rule clarifying whether a county is considered “rural” or “underserved” with respect to certain exemptions in the Dodd-Frank mortgage rules issued earlier this year.

By way of reminder, several rules published this year, including the Qualified Mortgage Rule, contained special provisions and exemptions for borrowers located in rural or underserved counties. The borrower needs to live in the underserved county; the exemptions do not apply just because the bank is located there. More specifically, small banks in rural communities often make non-traditional loans such as balloon mortgages. These loans are not eligible to be sold into the secondary market, so they are booked with the originating institution, giving it a vested interest in the loans and allowing them to work out solutions if problems arise. Accordingly, the CFPB included an exemption from the Qualified Mortgage Rule for these types of loans when the borrower lives in a rural or underserved area.

Additionally, the 2013 Escrows final rule, which lengthened the time for which a mandatory escrow account must be maintained for a higher-priced mortgage loan, contained an exemption for borrowers located in rural or underserved areas. The definition or rural and underserved is important to institutions assessing their compliance obligations.

The CFPB’s new final rule explains how it will determine whether a county is considered “rural” or “underserved.” The list of counties should be reviewed by institutions issuing loans to borrowers who are located in these areas, and checks should be added to the compliance process as necessary. Contact Spilman or regulatory counsel to discuss the implications of this listing on your institution.

For quick reference, the following counties in North Carolina, West Virginia, Pennsylvania, and Virginia are on this year’s list:


FIPS State County
37005 NC Alleghany
37009 NC Ashe
37011 NC Avery
37015 NC Bertie
37017 NC Bladen
37033 NC Caswell
37039 NC Cherokee
37041 NC Chowan
37043 NC Clay
37047 NC Columbus
37049 NC Craven
37055 NC Dare
37061 NC Duplin
37073 NC Gates
37075 NC Graham
37077 NC Granville
37091 NC Hertford
37095 NC Hyde
37099 NC Jackson
37111 NC McDowell
37113 NC Macon
37117 NC Martin
37121 NC Mitchell
37123 NC Montgomery
37131 NC Northampton
37137 NC Pamlico
37139 NC Pasquotank
37143 NC Perquimans
37149 NC Polk
37163 NC Sampson
37173 NC Swain
37177 NC Tyrrell
37185 NC Warren
37187 NC Washington
37199 NC Yancey
42009 PA Bedford
42023 PA Cameron
42031 PA Clarion
42047 PA Elk
42053 PA Forest
42057 PA Fulton
42059 PA Greene
42065 PA Jefferson
42067 PA Juniata
42083 PA McKean
42105 PA Potter
42109 PA Snyder
42113 PA Sullivan
42115 PA Susquehanna
42117 PA Tioga
42127 PA Wayne
51001 VA Accomack
51005 VA Alleghany
51017 VA Bath
51021 VA Bland
51025 VA Brunswick
51027 VA Buchanan
51029 VA Buckingham
51035 VA Carroll
51037 VA Charlotte
51045 VA Craig
51047 VA Culpeper
51051 VA Dickenson
51057 VA Essex
51063 VA Floyd
51077 VA Grayson
51081 VA Greensville
51083 VA Halifax
51091 VA Highland
51099 VA King George
51103 VA Lancaster
51105 VA Lee
51111 VA Lunenburg
51113 VA Madison
51117 VA Mecklenburg
51119 VA Middlesex
51131 VA Northampton
51133 VA Northumberland
51135 VA Nottoway
51137 VA Orange
51139 VA Page
51141 VA Patrick
51147 VA Prince Edward
51157 VA Rappahannock
51159 VA Richmond
51163 VA Rockbridge
51167 VA Russell
51171 VA Shenandoah
51173 VA Smyth
51175 VA Southampton
51185 VA Tazewell
51193 VA Westmoreland
51195 VA Wise
51197 VA Wythe
51530 VA Buena Vista
51580 VA Covington
51595 VA Emporia
51620 VA Franklin
51640 VA Galax
51678 VA Lexington
51720 VA Norton
54001 WV Barbour
54007 WV Braxton
54013 WV Calhoun
54017 WV Doddridge
54021 WV Gilmer
54023 WV Grant
54025 WV Greenbrier
54031 WV Hardy
54033 WV Harrison
54035 WV Jackson
54041 WV Lewis
54045 WV Logan
54047 WV McDowell
54055 WV Mercer
54059 WV Mingo
54063 WV Monroe
54067 WV Nicholas
54071 WV Pendleton
54075 WV Pocahontas
54083 WV Randolph
54085 WV Ritchie
54087 WV Roane
54089 WV Summers
54093 WV Tucker
54095 WV Tyler
54097 WV Upshur
54101 WV Webster
54103 WV Wetzel
54109 WV Wyoming



by R. Scott Adams

R. Scott Adams

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