Consumer Financial Protection Bureau representatives announced at a Nationwide Mortgage Licensing System & Registry conference that the agency would begin company examinations based on their size due to a lack of resources.
“They’re going to look first at the companies with the biggest reach to consumers,” Todd Ausherman, an NMLS conference attendee, said, according to Reverse Mortgage Daily. “So, the smaller companies are unlikely to be examined, at least in the short term.”
Second on the CFPB agenda will be companies with a large number of complaints, Ausherman said, Reverse Mortgage Daily reports.
The CFPB employs just under 800 staff members. Ausherman said that the worry is that the agency plans to take the regulatory rules as they are without any adjustments.
“Uncertain seems to be the word of the day,” Ausherman said, according to Reverse Mortgage Daily. “The thing that really struck me that they say they have created very little original content. They are instead taking from other entities that fall under their jurisdiction.”
Ausherman said that CFPB representatives said that the agency is applying rules with no intentions of rocking the boat, according to Reverse Mortgage Daily. Ausherman also said that the first rule the public will likely see will be when the CFPB combines the Truth in Lending Act and Real Estate Settlement Procedure Act.
Under the Dodd-Frank Act, the CFPB must revise, combine and integrate mortgage loan disclosure forms under TILA and RESPA before January 13. Ausherman said that smaller companies will have more contact with the agency as it moves down to the state level.
“I think that’s how smaller companies are going to be more directly affected. We will see more in state regulations with the same standards at minimum,” Ausherman said, according to Reverse Mortgage Daily.