CFPB updates mortgage rule exam procedures
Aug. 16, 2013 – The CFPB released a second update to its examination procedures to give guidance to financial institutions and mortgage companies on what the bureau will be looking for as its new mortgage rules take effect.
The CFPB has updated sections of the exam procedure manuals for the Truth in Lending Act and the Real Estate Settlement Procedures Act.
The CFPB only has direct supervision, examination and enforcement authority over depository institutions with more than $10 billion in assets, but all credit unions are subject to its mortgage rules and will be examined for compliance. Most credit unions will be examined by NCUA, which will be monitoring for the same compliance issues. NAFCU Regulatory Affairs Counsel PJ Hoffman says, “NAFCU will continue to monitor how any changes in examination procedures will affect credit unions whether they come from the CFPB or the NCUA.”
Financial institutions and mortgage companies will be examined for CFPB rules that:
- require lenders to evaluate a borrower’s ability to pay back the loan;
- ban or limit certain points, fees and risky features;
- require servicers to provide monthly statements and disclosures;
- restrict dual-tracking, such as when the servicer moves forward with foreclosure while simultaneously working with the borrower to avoid foreclosure;
- require access to servicing personnel and a fair review process; and
- require creditors use a licensed or certified appraiser.
CFPB press statement
RESPA exam procedures
TILA exam procedures