Now that the Consumer Financial Protection Bureau (CFPB) has the authority to regulate non-banks, the newly-formed agency is wasting no time in focusing much of its oversight efforts toward the mortgage industry. In January, the CFPB launched its first investigation of a private mortgage lender and servicer for alleged regulatory violations just days after its first director was appointed. It’s clear that mortgage companies need to take a close look at their compliance and risk management programs to ensure they are ready for the CFPB to pay a visit come exam time.
More specifically, lenders and servicers need to make themselves aware of what the CFPB has planned with its upcoming oversight efforts. This will likely include the enforcement of numerous fair and anti-predatory lending and compliance documentation requirements put forth within the Dodd-Frank Act. In light of this, lenders and servicers have to understand three important things:
- The regulatory obligations their organizations are now beholden to under the Dodd-Frank Act;
- What they must do from a risk management, business and workflow standpoint to help ensure they are in compliance; and
- How they can effectively prove to the CFPB and other regulators they are meeting all requirements.
Wolters Kluwer Financial Services’ regulatory and risk management experts will be covering all of this at National Mortgage News’ upcoming Mortgage Servicing Conference. For more details, visit www.MortgageServicingConference.com