CFPB Issues Mortgage Origination Guideance


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.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Butler Snow LLP | Attorney Advertising

Written by:


Butler Snow LLP on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.