WASHINGTON (8/16/13)--Updated examination procedures for Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) compliance were unveiled by the Consumer Financial Protection Bureau on Thursday.
"We are committed to transparency around our examination process...So we have worked hard to provide industry with advance notice of what we will be expecting. That, in turn, will improve compliance and benefit consumers," CFPB Director Richard Cordray said.
The latest updates address exams for Ability-to-Repay/Qualified Mortgage, high-cost mortgage, and appraisals for higher-priced mortgage loans regulations. New amendments related to the escrows rule and credit card regulation changes are also covered in the exam procedure update.
The exam procedures, according to the CFPB, will help financial institutions and mortgage companies understand how they will be examined for CFPB rules that:
Require lenders to evaluate a borrower's ability to pay back a loan;
Ban or limit certain points, fees, and risky features;
Require servicers to provide monthly statements and disclosures;
Require access to servicing personnel and a fair review process; and
Require creditors use a licensed or certified appraiser.
The CFPB has now released exam procedures for mortgage origination rules issued through May 29 and mortgage servicing rules issued through July 10. More releases are planned.
For more on the exam procedures, use the resource link.