Mon, Jun 17, 2013
Washington, District Of Columbia
Examination procedure manuals for two lending regulations, the Truth in Lending Act (TILA) and the Equal Credit Opportunity Act (ECOA), have been released by the Consumer Financial Protection Bureau.
The CFPB in a release said the new manuals "are intended for use by CFPB examiners and the financial institutions and mortgage companies subject to the new regulations.
"They are the first round of updates for what will likely be multiple updates," the bureau said.
Examination procedures for ability-to-repay and mortgage servicing rules will also be released in the coming months, the CFPB added. The bureau also said it plans to publish additional interim examination procedures in the near future. These and other examination changes will eventually be incorporated into the CFPB's general supervision and examination manual.
The exam procedures, according to the CFPB, will help financial institutions and mortgage companies understand how they will be examined for CFPB rules that:
- Set qualification and screening standards for loan originators;
- Prohibit steering incentives;Prohibit dual compensation;
- Protect borrowers of higher-priced mortgage loans;
- Prohibit the waiver of consumer rights;
- Prohibit mandatory arbitration;
- Require lenders provide appraisal reports and valuations; and
- Prohibit single premium credit insurance.
Source CUNA News Now