The sleeping giant that is the Consumer Financial Protection Bureau (CFPB) has been awakened as a result of the recess appointment of Richard Cordray to be the CFPB’s new Director. Many things have been on hold pending that appointment, and it is likely that the pace of new developments and new regulations will now accelerate. With the Director in place, the CFPB can set about regulating those entities that have not thus far been regulated and examined the way banks have been. Mortgage lending is one of the initial areas of interest.
Last week, the CFPB issued new Exam Procedures for Mortgage Origination. While the compliance function of mortgage loan origination has not been changed, the focus of these exam procedure has. The emphasis now is on protecting the consumer, rather than making sure that the lender uses all of the right forms, crosses all of the “t’s” and dots all of the “i’s.” Banks that originate loans secured by a borrower’s residence will be covered, as will the previously less regulated mortgage companies.
See full alert below.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.