The Consumer Financial Protection Bureau confirmed this week it will no longer include enforcement attorneys in its on-site exams of mortgage lenders.
Starting in November, the agency will no longer have enforcement attorneys present at exams, a feature which often made lenders uneasy during routine checks, according to a report from Inside Mortgage Finance, which confirmed the change with a spokeswoman from the Bureau.
“Supervision examiners and enforcement attorneys will continue to work closely to ensure that the financial institutions that we oversee are following the rules,” the spokeswoman told Inside Mortgage Finance. “We found that it wasn’t efficient to have both examiners and enforcement attorneys physically present on exams.”
The attorneys will still take part in coordinating with examiners, the agency told IMF.
“We think this approach will result in better overall oversight,” the spokeswoman told the publication.
The CFPB initially began including enforcement lawyers in its exams of mortgage lenders in 2012.
Written by Elizabeth Ecker