In his prepared remarks to the Mortgage Bankers Association, CFPB Director Richard Cordray offered some insight into his office’s examination priorities with respect to the mortgage industry. Here are the key takeaways:
- TRID: In his remarks, Cordray characterized the CFPB’s early examinations of TRID compliance to be “diagnostic and corrective, not punitive.” According to Cordray, examiners are focused on the institution’s compliance management system and efforts to comply. Cordray also indicated that examiners are engaged in transaction testing.
- Mortgage Servicing: Cordray confirmed that the complaint portal is being used as a partial basis for examinations as it provides a better understanding of trends. Cordray also indicated that mortgage servicing remains a focal point of examinations and that examiners will continue to focus on the effectiveness of institutional information technology systems.
- Redlining: Again, Cordray indicated that this is a “priority issue” in the Bureau’s supervisory work without much elaboration.