CFPB Issues S.A.F.E. Act Examination Procedures


On March 7, 2012, the Consumer Financial Protection Bureau (CFPB) issued guidance regarding examination procedures pertaining to compliance with the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act or SAFE) examination procedures. This issuance pertains to examinations relating to federally registered individuals and their employers.

The guidance largely reconfirms information included in the final rule promulgated by the various federal banking regulatory agencies during 2010. For instance, similarities include definitions, de minimis exemptions, steps and procedures to obtain and maintain federal registration, and policies and procedures.

The examination procedures and criteria had been expected, and can be summarized, as follows:

-Establish whether written policies and procedures have been adopted to assure compliance with the SAFE Act and applicable regulations.

-Determine whether the annual independent testing of the institution's policies and procedures regarding compliance with the SAFE Act and applicable regulations has been conducted.

-Evaluate whether any deficiencies identified during independent testing have been corrected and measures have been put into place to ensure that deficiencies do not recur.

In this newsletter, we will briefly outline the salient features of the SAFE examination for federally registered individuals and their employers.


Examination Objectives

Policy Statement

Policies and Procedures

Examination Procedures

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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.

© Jonathan Foxx, Lenders Compliance Group | Attorney Advertising

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