CFPB Issues Housing Counselor Information Interpretive Rule
On April 15, 2015, the Consumer Financial Protection Bureau (CFPB) restated guidance in the form of a final interpretive rule on how to provide mortgage applicants with homeownership counseling organization lists.
The Real Estate Settlement Procedures Act (RESPA) requires lenders to provide mortgage loan applicants with a list of homeownership counselors. The list can either come from a tool developed by the CFPB or by using data provided by the CFPB.
This new interpretive rule provides instructions for lenders to use in order to comply if they are developing a list by using data from the CFPB. The final interpretive rule also covers qualifications on providing high-cost mortgage counseling and lender participation in the counseling. It is effective when it is published in the federal register.
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
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