Complying with the Consumer Financial Protection Bureau (CFPB) may soon involve taking an oath when assisting them during an examination, according to reports from Inside Mortgage Finance.
Though it may be too early to tell if a trend is developing, IMFnews notes accounts that are beginning to surface where CFPB examiners suspicious of mortgage banking executives’ participation during the exam process are pressed to provide their input under oath.
Specifically, IMF highlights an instance where the owner of a Mid-Atlantic area mortgage company, who CFPB examiners believed to be lying, was asked to be questioned under oath for the investigation.
Asking for the sworn testimony of executives might be standard practice at some government agencies such as the Federal Reserve, however, the CFPB’s recent developments and position as a regulator bears some significance.
“Frankly, the fact that the bureau is doing this, given the bureau’s reach and the level of interest about it—and the fear around the bureau—I think it’s news, notwithstanding the fact that it might have some precedence,” one lawyer told IMFnews.
Written by Jason Oliva