2012 is going to be a year of fast-paced compliance changes—with two changes (one mandatory and one not, yet) to address and it’s still January. First up are mandatory changes to federal agency information (mandatory by January 1, 2013). (See Appendix A in the Federal Register – CFPB's Regulation B re-publication for more details.) Non-mandatory but equally important are revisions to the Settlement Costs Booklet.
So, with one change not due for almost a year and one non-mandatory change, what reason do we have for talking about these changes now? Actually, we have four reasons.
It’s always about the consumer. Some federal agencies have changed while others have changed addresses. This means your current version of Adverse Action notices (VMP30, VMP132 and VMP126) may have incorrect federal agency contact information. It also means a consumer could contact the agency listed on these forms, find out it’s the wrong agency, be bounced to another agency, put on hold, and hang up—ultimately frustrated with the lending institution and the entire lending experience.
Regulators like lenders to stay on top of changes. With all the regulatory agencies looking over lenders’ shoulders, it’s simply expedient to stay on top of changes. Providing consumers with the most current and accurate information on the appropriate agency to contact demonstrates that the lender is in front of regulatory changes.
Avoid the last minute scramble to comply. Behind death and taxes, the third guarantee in our industry is that there will be many, many more regulatory changes before the year is out. We have already made changes to the Settlement Costs Booklet so lenders don’t have to wait to offer consumers the most up-to-date documents. (Contact your sales representative or customer support to place an order on updated forms. 1-800-552-9410.)
After the consumer, it’s always about managing risk. It’s hard to pick up any industry publication or access any government or industry website without finding an article about risk management. We help lenders manage their risk by offering imprint capabilities on printed financial documents. Having adverse action documents “pre-populated” with the data saves lenders time inputting data, gets the forms to the consumers faster, and can greatly reduce the chance of errors (risk).
Talk to us!
We want to hear from you—about regulatory changes and anything else affecting consumers and our industry. Respond to this blog and follow us on Twitter, LinkedIn or Facebook to stay up to date on the latest 2012 regulatory changes.