Dodd-Frank Mortgage Rules Readiness Guide -CFPB

By: Jann Swanson •

The Consumer Financial Protection Bureau's (CFPB's) Dodd-Frank Mortgage Rules Readiness Guide is now available to assist lending institutions evaluate whether they are ready for the impending changes in mortgages rules slated to take place between June 1, 2013 and mid-January 2014.  CFPB said the guide was designed to help regulated entities with compliance by highlighting important issues likely to come up in reviews and to focus the industry and examiners on the aspects of the broader compliance system that may need to be improved in the future.  Some of the topics covered:

  • Ability to Repay and Qualified Mortgage Standards (Regulation Z)

  • Escrow Requirements under the Truth in Lending Act

  • High Cost Mortgage and Homeownership Counseling

  • Mortgage Services Rules

  • ECOA Appraisals for Higher Priced Mortgage Loans

  • TILA Appraisals for Higher-Priced Mortgages Loans

  • Loan Originator Compensation Requirements

The four part guide contains a summary of the rules listed above and their dates of implementation. Part II consists of an extensive questionnaire/checklist lenders can use to assess their readiness in compliance areas such as developing an implementation plan, the appropriateness of their policies and procedures, training, audits and quality control, complaints, and vendor management. Part III is a compendium of commonly asked questions and their answers, and Part IV, Tools, contains an extensive list of web links that provide additional information, help, and support.

CFPB said it plans to periodically update the document which is available only online. The agency said it welcomes comments and suggestions from users for improving the Guide.