The Consumer Financial Protection Bureau today released a readiness guide to aid mortgage lenders that are in the process of adopting and adapting to new rules under the Dodd-Frank Act that will go into effect in 2014.
The purpose of the guide, the agency says, is to assisted regulated entities in achieving compliance with mortgage rules, highlight key issues areas that may be examined during a review, and to focus the lending community as well as examiners on key areas of compliance management that may warrant further attention.
“Our goal is to provide a guide that can be used by institutions of all sizes to evaluate their readiness for the impending mortgage rule changes,” the CFPB writes in introducing the guide, which can be accessed via its website. “The guide provides high level topics that institutions should consider as they implement these rule changes.”
The guide includes a summary of the new rules, a questionnaire, frequently asked questions and tools to help compliance efforts.
While it does not explicitly state the rules, it summarizes rules regarding Ability to Repay, Qualified Mortgage standards, escrow requirements, high cost mortgages, homeownership counseling, servicing rules, loan originator compensation and others. It then walks through questions to help lenders prepare for the new rules, including compliance procedures.
The CFPB says it will update the guide based on any mortgage rule changes in the future.
“We plan to update this guide periodically as rule clarifications and amendments are finalized and we identify new issues through the implementation phase,” the CFPB writes.
The agency most recently clarified its 2014 mortgage rules in late June, introducing several amendments to the original requirements. In addition to the readiness guide, the agency has launched a compliance website toward helping lenders adapt to the new rules.
Written by Elizabeth Ecker