Hot off the heels of its qualified mortgage and ability-to-repay rules, the Consumer Financial ProtectionBureau late Thursday also issued final rules for high-costmortgages.

The CFPB defined them as having annual percentage rates thatexceed the average prime rate by 1.5 percentage poits or morefor first liens, or by 3.5 points or more for loans secured bya subordinate lien.

The new rules ban balloon payments and pre-payment penalties,bans modification fees and limits late fees. Charging for providinga payoff statement and encouraging consumers to default on existingloans so they can refinance to a higher-priced loan are alsoout.

Consumers must also receive housing counseling before taking outa high-priced mortgage, and the CFPB added a new requirement thathigher-priced mortgages maintain escrow accounts for a minimum offive years.

“Addressing problems in the mortgage market is critical tohelping our economy recover,” said CFPB Director Richard Cordray. “Today's changes will better help consumers tounderstand the real costs of owning a home while protecting themfrom harmful practices that can trap them into high-costmortgages.”

The bureau also Thursday implemented a rule that requireslenders provide a list of homeownership counseling organizations toconsumers shortly after they apply for a mortgage.

Mortgage lenders can expect more rules soon regardinghigher-priced mortgages that concerns appraisals. The NCUA Boardheld a public briefing on the rule Thursday during its boardmeeting.

The file rule will increase appraisal standards and appraisalinformation provided to borrowers. NCUA staff told the board theyexpect the rule within the next few days, and say the CFPB willlikely give lenders a full 12 months to comply.