As part of an effort to better prepare lenders for its mortgage regulations set to take effect in January, the CFPB published a “Readiness Guide” last week to help lenders comply with the rules.
The 21-page guide includes a summary of the rules, readiness questionnaire, FAQ section and various resources to help lenders comply.
Changes and amendments to the CFPB’s ability-t0-repay and qualified mortgage standards are included in the guide, as well as a summary of escrow requirements under the Truth in Lending Act; higher-cost mortgage and homeownership counseling provisions; mortgage servicing rules; ECOA valuations for loans secured by a first lien on a dwelling; TILA appraisal provisions for higher-priced mortgages; and loan originator compensation requirements.
The readiness questionnaire is a self-assessment to assist lenders in determining their preparedness for the effective date of the rules. The agency also provided answers to commonly asked questions and a link to other resources to help lenders in their implementation of the final mortgage rules.
The 2010 Dodd-Frank Act implemented a number of reforms to the financial system, and in January, the CFPB issued eight final rules that amend existing regulations, including TILA—Regulation Z—as well as Regulations X–Real Estate Settlement Procedures Act– and B–ECOA.