The Consumer Financial Protection Bureau today released the exam procedures the agency will follow for the newest mortgage regulations issued in January of this year.
The framework outlines what the CFPB will be looking for as the rules become effective including new regulations regarding appraisals, escrow accounts and loan originator compensation and qualifications. The guidance will help lenders prepare for exams in advance of the rules going into effect, the agency says.
“The CFPB recognizes that the easier we make it for financial institutions and mortgage companies to follow the new regulations, the better off consumers will be,” said CFPB Director Richard Cordray. “By releasing details of what our examiners will be looking for well in advance of the effective date of most of the rules, we are giving industry more time to adjust.”
The new rules and exam procedures span the Truth in Lending Act (TILA) and Equal Credit Opportunity Act (ECOA), both of which have been updated to reflect numerous changes under Dodd-Frank; slated to go into effect in January 2014.
The rules cover prohibition of steering, dual compensation, borrower protection from high priced loans, and consumer rights, among others.
They can be found here.
Written by Elizabeth Ecker