Mon, Aug 26, 2013
Washington, District Of Columbia
Updated examination procedures for Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) compliance were unveiled by the Consumer Financial Protection Bureau.
"We are committed to transparency around our examination process...So we have worked hard to provide industry with advance notice of what we will be expecting. That, in turn, will improve compliance and benefit consumers," CFPB Director Richard Cordray said.
The latest updates address exams for Ability-to-Repay/Qualified Mortgage, high-cost mortgage, and appraisals for higher-priced mortgage loans regulations. New amendments related to the escrows rule and credit card regulation changes are also covered in the exam procedure update.
The exam procedures, according to the CFPB, will help financial institutions and mortgage companies understand how they will be examined for CFPB rules that:
- Require lenders to evaluate a borrower's ability to pay back a loan;
- Ban or limit certain points, fees, and risky features;
- Require servicers to provide monthly statements and disclosures;
- Restrict dual-tracking;
- Require access to servicing personnel and a fair review process; and
- Require creditors use a licensed or certified appraiser.
The CFPB has now released exam procedures for mortgage origination rules issued through May 29 and mortgage servicing rules issued through July 10. More releases are planned.
For more on the exam procedures, use the links below.
Fair Housing Act course online
CUNA Regtrac, track regulatory changes with real-time updates
10 Questions to Ask a Mortgage Lender statement stuffer
Home Buyer Education—Preparing Your Finances electronic member seminar kit
Source: CUNA News Now