The Consumer Financial Protection Bureau (CFPB) recently celebrated its second birthday and there are no signs of the CFPB slowing down. Instead, a close look at the CFPB’s recently released semiannual regulatory agenda indicates that it is moving full speed ahead on additional regulatory rule making. The highlights of the CFPB’s agenda provide a few predictions of what compliance officers can expect to hit their desks over the next six months.
Continuing Mortgage Rule Clarifications—and a Seventh Rule Although the CFPB issued six new mortgage rules in January, the CFPB has been continuously made updates to the final rules over the summer and has only now finalized the rules. The most recent updates include:
Clarifying the flexibility available to credit unions when dealing with delinquent borrowers
Finalizing the rule prohibiting the financing of credit insurance premiums for some types of mortgage loans
Changing the effective date for the loan originator compensation rule to January 1, 2014
In addition to the original six rules, the CFPB indicated that it will press forward with issuing the seventh mortgage rule in October. The final rule will create a combined disclosure under Regulation Z and Regulation X. While the rules already finalized focus on the policies and procedures of underwriting and servicing, the combined disclosure rule will completely revamp the disclosure requirements connected to the loan event, making the end of 2013 a busy time for mortgage lenders.
Expedited Funds Availability Act Update Expected by Year-end The CFPB has committed to modernizing deposit regulations by the end of 2013. The CFPB indicated it will finalize revisions to Regulation CC to update the Expedited Funds Availability Act to accommodate an all-electronic interbank check collection and return process. Members may not see much of a practical change from the new rules. However, credit unions will likely have to learn new time periods for funds availability, and new model disclosures.
Expect the CFPB to Expand Fair Lending Focus in 2014 The CFPB has clear ambitions to expand its regulatory focus. The CFPB’s regulatory agenda unmistakably signals that fair lending will be a focal point of new rule making starting in 2014. The start of this effort will be a hard look at the data gathering requirements under the Home Mortgage Disclosure Act ("HMDA”) and will later expand into possible rules mandating the collection of credit application data for credit unions involved with business lending.
The CFPB’s regulatory agenda sets the expectation that the furious pace of regulatory change will continue for the coming year. Those of you who were hoping for a reprieve will instead have to keep up with the precocious two-year-old agency. Jonathan Bundy is a Regulatory Compliance Manager for CUNA Mutual Group. He can be reached at (608) 665-7101.