CFPB updates mortgage rule exam procedures
Dec. 3, 2013 – CFPB last week released updates to the examination procedures details in its mortgage regulations issued at the beginning of 2013, incorporating amendments involving the Truth in Lending and Real Estate Settlement Procedures Acts made in November.
The updates center around the examinations for compliance with TILA/RESPA. The procedures only affect credit unions with more than $10 billion in assets.
The guidance incorporates the most recent amendments made to Regulations X and Z, including the interim final rule issued in October, and the TILA/RESPA final regulation released in November.
In November, NAFCU President and CEO Dan Berger urged NCUA Board members to coordinate with the CFPB on enforcing the mortgage-related regulations slated for early 2014, noting the CFPB’s recent statements about flexibility in enforcement.
“Recently, at a hearing in front of the Senate Banking Committee, CFPB Director Richard Cordray recognized the challenges that lenders are facing and specifically stated that, in the ‘early months’ after the effective date, the CFPB is looking for ‘good faith efforts toward substantial compliance,’” Berger said in a letter to the agency board. “He also indicated that the CFPB has discussed this matter with other regulators, who ‘are in agreement on this point.’
Berger also wrote to CFPB recently to urge the delay of the bureau’s seven mortgage-related rules for at least 12 months.