The Consumer Finance Protect Bureau (CFPB) was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act passed in July 2010.
This landmark action established the CFPB as the chief protector of American consumers in several key areas. For Mortgage Bankers, the CFPB handles 26 plus regulations and has assumed power from many Federal regulators including HUD, OCC, FDIC, OTS, The Federal Reserve and more. In addition to regulating existing regulations the CFPB also has full rule making capabilities, is currently examining existing rules and can make additional rules wherever necessary. The CFPB scope is greater than previous regulators with the ability to investigate anything they uncover within an examination and refer information to other regulatory agencies. While the current body of regulation is well established and substantial, several areas the CFPB will cover have yet to be clearly codified, leaving regulatory examiners to interpret and enforce regulations yet to be fully described. Current staff at the CFPB number approximately 800 and nearly half are in the area of examination and enforcement.
Mortgage Bankers that are depositories have been supervised by the CFPB since 2011 and since Richard Cordray's appointment (who leads the CFPB), non-depositories are now also supervised effective January 2012. Both types are being examined by the CFPB and those efforts will be an ongoing function of the CFPB moving forward.
Lenders are clearly in a "New World of Mortgage Lending", one that the CFPB will actively shape to define the new paradigm. Some industry experts have commented on the road ahead with several years of changes followed by years of adjustments with it perhaps being a decade before Mortgage Banking finds its new status quo.
Being proactive and focusing on training and education are key and that’s where Diehl Compliance can help. Our One Day CFPB Exam Readiness Program is suitable for audiences from the Board to Production staff and is designed to raise awareness and foster a proactive compliance mindset throughout the organization.
Diehl's cost effective e-solutions provides on going compliance training taught by experienced mortgage bankers along with assessment tools so that you are able to demonstrate your training calendar and the results of training along with corrective actions to train and develop your team, helping to make your staff a compliance asset.