The CFPB on Friday issued what itcalled amendments and clarifications to its mortgage rules,following up on questions it said arose during the implementationprocess since they were issued in January.

The new rules include an exemption of all small creditors –including those in rural or underserved counties – from a newban on high cost mortgages featuring balloon payments “as long asthe loans meet certain restrictions,” the CFPB said.

That exemption will continue while the re-examination process ofthe “ability to repay” mortgage rules continues, the bureau said inthe announcement.

“The rules will also make it easier for certain small creditorsto continue qualifying for an exemption from a requirement tomaintain escrows on certain higher-priced mortgage loans,” the CFPBsaid.

“Because of an update in Census data, some creditors otherwisemight have lost their eligibility for this exemption in 2014 or2015 while the Bureau was reexamining the underlying definitions,”the announcement said.

The modifications also include clarifications on the Dodd-FrankAct-imposed prohibition on financing credit insurance premiums, aswell as permitted servicer activities in the first 120 days ofdelinquency and procedures for loss mitigation applicationinformation gathering.

Also included are modifications that will make it easier, thebureau said, for servicers to offer short-term forbearance plansfor delinquent borrowers who need only temporary relief withoutgoing through a full loss-mitigation evaluation process

“Our mortgage rules were designed to eliminate irresponsiblepractices and foster a thriving, more sustainable marketplace,”CFPB Director Richard Cordray said in the announcement Friday.

“Today's rule amends and clarifies parts of our mortgage rulesto ensure a smoother implementation process, which is helpful toboth businesses and consumers,” Cordray said.

The final rule is available online and the CFPB maintains a websiteon regulatory implementation it said consolidates the new 2013mortgage rules and implementation information.