Add text here€¦ · 1 CFPB Update May 2014 Marvin Stone CFPB Program Manager . - About the CFPB -...
Transcript of Add text here€¦ · 1 CFPB Update May 2014 Marvin Stone CFPB Program Manager . - About the CFPB -...
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CFPB Update
May 2014
Marvin Stone
CFPB Program Manager
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
2 © Copyright Stewart 2014
About the CFPB
Banks under a microscope
Mortgage origination
Mortgage servicing
Loss mitigation
Auto loans
Student loans
Service Members Civil Relief Act
Consumer Complaint Database
Remittance
Deposits
Non-Banks now under Federal supervision and enforcement
Audits off the record
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
3 © Copyright Stewart 2014
Response and input on Proposed Rule
Response to Request for Information
eClosing informal Pilot
RFP Partner
ATR/QM feedback
Stewart and the CFPB
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
4 © Copyright Stewart 2014
Disclosures Controls Complaints Transformati
on
1 2 3
Buyer Seller roker Agent Builder Local Lender
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CFPB Areas of Focus
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
5 © Copyright Stewart 2014
1. Disclosures Effective Date August 1, 2015
Final Rule in November
Forms finalized
Loan Estimate 3 pages
Closing Disclosures 5 pages Lender or Settlement can prepare / deliver
3-Day (Business Day) Rule
Does not remove 3-Day Right of Rescission on refis
$100 tolerance dropped 1/8% Apr instead Like TIL
rekeying?
Requirements for retention but not Standard Format
May still need a disbursement statement
Back to Itemized Fees with totals (GFEExpressQuote)
UCD + HMDA = XRAY
Pilots Beginning January 2015 +/-
New guides released 89 pages
Lenders, Doc Providers & LOS integrations
Itemized fees return
** Personal feedback from two Realtors
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
6 © Copyright Stewart 2014
2. Controls
CFPB Bulletin to Banks and Non-Banks stating they must use quality service providers.
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
7 © Copyright Stewart 2014
ALTA Best Practices Roundtable
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
8 © Copyright Stewart 2014
Best Practices Roundtable Meeting
Regulatory pressures on banks (CFPB, OCC, FDIC)
Title and settlement are most difficult to manage
All lenders present support ALTA Best Practices
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Target for self-assessments by August 1st.
ALTA Best Practices Roundtable
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
9 © Copyright Stewart 2014
ALTA Best Practices
1. Current Licenses - Establish and maintain current
License(s) as required to conduct the business of title
insurance and settlement services.
2. Escrow Accounts - Adopt and maintain appropriate
written procedures and controls for Escrow Trust
Accounts allowing for electronic verification of
reconciliation.
3. Privacy Program- Adopt and maintain a written
privacy and information security program to protect
Non-public Personal Information as required by local,
state and federal law.
4. Settlement Processes - Adopt standard real estate
settlement procedures and policies that help ensure
compliance with Federal and State Consumer Financial
Laws as applicable to the Settlement process.
5. Written Procedures - Adopt and maintain written
procedures related to title policy production, delivery,
reporting and premium remittance.
6. Insurance Coverage - Maintain appropriate
professional liability insurance and fidelity coverage.
7. Complaints Process - Adopt and maintain written
procedures for resolving consumer complaints.
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
10 © Copyright Stewart 2014
ALTA Best Practices
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
11 © Copyright Stewart 2014
Lenders and Consumer Complaints
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
12 © Copyright Stewart 2014
3. Complaints
CFPB Consumer Complaint
Database reaches 300,000.
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
13 © Copyright Stewart 2014
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
14 © Copyright Stewart 2014
Complaint Response
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
15 © Copyright Stewart 2014
CFPB Exams
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
16 © Copyright Stewart 2014
CFPB Exams
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
17 © Copyright Stewart 2014
CFPB Exams
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- About the CFPB
- Effective Date
- Loan Estimate
- Closing Disclosure
- Delivery Alternatives
- Three-Day Rule
- All-In APR
- Electronic Storage
- Proposals Not
Adopted
Overview
1. Disclosures
2. Controls
3. Complaints
4. Transformation
Next Steps
18 © Copyright Stewart 2014
Exam or OCC MRA audit where they review consumer complaints and find that our settlement providers have no process for capturing or resolving complaints. It
Bank of America
Title & Settlement Strategy
National Lender on Complaints