The Consumer Financial Protection Bureau (CFPB) yesterday released a second update to its exam procedures in connection with the new mortgage regulations issued in January 2013. The interim exam procedures offer valuable guidance to financial institutions and mortgage companies on what the CFPB will be looking for as the rules become effective.
The updates cover the Ability-to-Repay/Qualified Mortgages, high-cost mortgages, and appraisals for higher-priced mortgage loans, as well as new amendments related to the escrows rule. The updates also cover recent changes to credit card rules. With today’s release, the exam procedures now cover the Bureau’s mortgage origination rules issued through May 29, 2013, and mortgage servicing rules issued through July 10, 2013.
The CFPB says the release of exam procedures will help financial institutions and mortgage companies understand and prepare for how they will be examined for CFPB rules that, among other things:
Require lenders to evaluate a borrower’s ability to pay back the 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
Require creditors use a licensed or certified appraiser
A copy of the RESPA exam procedures released yesterday can be found on the CFPB website.
A copy of the TILA exam procedures is also available online.