The CFPB released on Monday updated mortgage origination and servicing exam procedures related to the agency’s new mortgage rules, which took effect last week.
The updates are intended to align existing exam procedures with revised interagency procedures based on the new rules.
Released in 2011, the CFPB Supervision and Examination Manual details how the agency will supervise and oversee firms in the consumer financial services industry and provides agency examiners with information on how to determine whether firms are compliant with federal consumer protection laws.
Exam guide modules in the origination area include company business model; advertising and marketing; loan disclosures and terms; underwriting, appraisals and loan originators; closing; fair lending; privacy; and examiner conclusions.
Modules in servicing include servicing transfers, loan ownership transfers and escrow disclosures; payment processing and account maintenance; consumer inquiries, complaints and error resolution procedures; maintenance of escrow accounts and insurance products; credit reporting; information sharing and privacy; collections and accounts in bankruptcy; loss mitigation; and foreclosures.