CFPB Outlines Next Priority Areas for Enforcement and Supervision

• October 26, 2016
• Anna DeSimone

In a speech to the Mortgage Bankers Association October 25, Consumer Financial Protection Bureau Director Richard Cordray highlighted three priority areas for enforcement and supervision in the next year:

Consumer complaints

Mr. Cordray emphasized the importance lenders should place on how they are serving customers. He urged lenders to study their own internal complaint system and recommended use of the CFPB’s complaint database in order to avoid mistakes made by peers. He reiterated that the CFPB considers monitoring and addressing complaints part of a basic component of any compliance effort.

Redlining

Mr. Cordray stated the bureau has identified this as a target for its supervisory work, and has teamed up with the U.S. Department of Justice to bring major enforcement actions against institutions found to be discriminatory in their lending.

RESPA violations

Mr. Cordray elaborated on the PHH ruling and noted that the bureau is not backing down on its RESPA enforcement. He also mentioned that the case is not final and that the bureau respectfully disagrees with the finding. He added that the CFPB will continue to adhere to its directives regarding marketing servicing agreements.   Mr. Cordray also noted that the CFPB “bought some critical time” for the industry by introducing the Qualified Mortgage (QM) and the Ability-to-Repay regulations, which gave the industry time to implement key rules of the Dodd-Frank Act.

Other concerns: HMDA and servicing

Mr. Cordray concluded his presentation by expressing comments regarding the implementation of the new HMDA regulations, part of which take effect in January 2017. He also warned servicers that the CFPB will be monitoring servicer actions to uphold compliance to the final servicing rule issued in August.

, CFPB, Mortgage Lending, Mortgage Servicing, Real Estate Lending | 1 Comment »