CFPB Mortgage Regs: Gearing Up for Implementation

August 22, 2013
Credit Union Times  
mortgage lending news

Starting on Jan. 10, 2014, credit unions and mortgage processors expect to be tested on how well they have prepared for new mortgage regulations from the Consumer Financial Protection Bureau (CFPB), which could require a more conscientious and costly approach for institutions that want to start or continue mortgage programs.

Many credit unions already follow some of the rules; but the added need to document and verify those procedures will make the process more complicated and expensive, according to Jon Bundy, regulatory compliance manager for CUNA Mutual Group in Madison, Wis. The new regulations, he says, will cause credit unions to reaffirm their mortgage goals. Institutions with plenty of assets and adequate resources will be able to perform mortgage loan processing in-house, but smaller credit unions may not have the internal resources and so must make sure that their third-party partner is prepared. One key issue is the need to automate the various revised loan processes to comply with the new standards, while keeping up member service levels. Smaller institutions will have to rely on vendor support for complying with the January deadline, according to Kelly Graham, president and chief executive of FICS, a mortgage origination and servicing software provider based in Addison, Texas.










Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`