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FMS – Boston Chapter Regulatory Compliance Update January 22, 2013 Presented by : Stephen King, JD. Regulatory Compliance Issues. HMDA Flood Insurance Bank Secrecy Act Fair Lending UDAAP Dodd-Frank Act Recent Rules GOOD NEWS. Regulatory Environment.
Consumer Finance Protection Bureau Mission
“Above all, this means ensuring that consumers get the information they need to make the financial decisions they believe are best for themselves and their families—that prices are clear up front, that risks are visible, and that nothing is buried in fine print. In a market that works, consumers should be able to make direct comparisons among products and no provider should be able to build, or feel pressure to build, a business model around unfair, deceptive, or abusive practices.”
CFPB 2013-2018 Strategic Plan
“If we achieve our mission, then we will have encouraged the development of a consumer finance market place…in which no one can build a business model around unfair, deceptive, or abusive practices;”
“Whether informal supervisory measures or formal enforcement action is necessary will depend on the type of problem(s) found and the severity of harm to consumers, among other factors.”
For originated loans, new data collection and/or reporting will include:
For originated loans plus applications that do not result in originations, new data collection and reporting will include the number and dollar amount of loans and applications grouped by:
AND at the Bureau's discretion:
Overt Discrimination: a specific, observable action taken against a person or class of persons because of protected status, e.g., national origin.
Disparate Treatment: an established practice based on discriminatory intent that adversely impacts a protected group.
Disparate Impact: a facially neutral practice that causes a substantial adverse impact on a protected group, and which cannot be justified as serving a legitimate business goal.
Advertising: 11/19/12 CFPB Press Release
January 10 - 20, 2013, CFPB issued these final rules:
Escrow Rules (June 1, 2013)
Qualified Mortgages – Ability to Repay (Jan 10, 2014)
Qualified Mortgages (Jan 10, 2014)
Loan Servicing (Jan 10, 2014)
HOEPA / HUD (Jan 10, 2014)
Mortgage Loan Originators (Jan 10, 2014)
Appraisals for Higher Priced Loans (Jan 18, 2014)
ECOA Appraisal Notices (Jan 18, 2014)
November 27, 2012
CFPB announced that it will issue a proposal in December 2012 to delay the February 7, 2013 Regulation E Remittance rule requirements. The Bureau stated that the new effective date will be 90 days after the issuance of final rules by the Bureau.
December 21, 2012
CFPB issued the proposed rules and is separately soliciting comments on the extension of the effective date and the 90-day implementation period.
“I doubt that any single area of risk management has occupied as much of my time since I became Comptroller in April as operating risk. From the foreclosure processing mess to fair lending violations to credit card marketing issues, the risk of loss that results from the failures of people, processes, systems, and external events has become a significant safety and soundness issue.”
- Comptroller of the Currency Thomas J. Curry 11/9/12
Stephen R. King, JD
Wolf & Company
Director, Regulatory Compliance Services