As mortgage lenders, brokers and servicers scramble to interpret and implement the myriad of rule changes mandated by the Dodd-Frank Act, the CFPB issued Version 1.0 of the “2013 CFPB Dodd-Frank Mortgage Rules Readiness Guide” (Guide). The CFPB claims that it “designed this guide for use by institutions of all sizes” and will be updated periodically.
The Guide provides a brief summary of the rules, including the rules governing ability to repay and qualified mortgage standards, escrow requirements under the Truth in Lending Act (“TILA”), high-cost mortgage and homeownership counseling, mortgage servicing, appraisal requirements for higher-priced mortgage loans under the Equal Credit Opportunity Act and TILA and loan originator compensation. The Guide cautions, however, that “[o]nly the rules and their official interpretations can provide complete and definitive information regarding their requirements.”
The Guide also includes a “readiness questionnaire” to allow institutions to assess their progress towards compliance with the new mortgage rules. The questionnaire asks a series of questions on developing and implementing a plan; policies and procedures; training; audit, compliance review and internal control; complaints; and third party and vendor management. The Guide points out that the questionnaire is not an examination tool, and it will not be added to the CFPB Examination Manual.
The Guide is rounded out with frequently asked questions and references to other CFPB guidance documents.