Newsroom

January 12, 2012

CFPB releases origination exam procedures

The Consumer Financial Protection Bureau on Wednesday released its mortgage origination examination procedures – a key element in the bureau's implementation of its supervision program over nonbank financial entities.

CFPB examiners will use the examination procedures as a field guide for looking at bank and nonbank mortgage originators, the CFPB said yesterday. The procedures outline how the bureau will work to ensure mortgage originators are complying with federal consumer financial laws.

The procedures describe the information examiners will use to evaluate whether mortgage originators' policies and procedures are in compliance with federal laws or pose potential risks to consumers. The manual requires examiners to note key activities, such as advertisements and closing practices.