WASHINGTON (2/14/13)--The Consumer Financial Protection Bureau assured Wednesday that it has plans to publish plain language guidance, work with other federal regulators and increase consumer outreach efforts as new mortgage regulations are implemented over the coming year.
The agency last month released a slew of final mortgage rules, many of which are scheduled to go into effect in January 2014. The CFPB regulations address mortgage servicing, mortgage loan originator compensation, high-risk-mortgage appraisals, ability to repay requirements, escrow accounts and "high-cost" mortgages.
"Our plan is to work with the mortgage industry to ensure that the CFPB's new rules are implemented accurately and expeditiously," CFPB Director Richard Cordray said in a release. "Both consumers and industry will win when the new rules are understood, applied, and carried out evenly and effectively. Mortgage borrowers, who have dealt with much heartache since the financial crisis, deserve this level of attentiveness," he added.
To ease implementation of the new regulations, the CFPB said it would:
- Coordinate with other federal government regulators that also conduct examinations of mortgage companies to ensure all regulators have a shared understanding of the new rules;
- Release easy-to-understand summaries of the regulations in both written and video form this spring;
- Publish updates of "official interpretations" of the rules. The interpretations will provide guidance on how to comply with the rules and allow the agency to address industry, consumer and regulatory questions regarding the regulations;
- Provide mortgage originators and servicers with a checklist of implementation, training and policy revision plans; and
- Inform consumers about the new mortgage rules through a broad-reaching education campaign.
The Credit Union National Association has produced charts covering the CFPB mortgage rules and their key components. For the charts, use the resource links.