Defined and yet-to-be-defined Consumer Financial Protection Bureau requirements and Dodd-Frank rules will continue to drive lender concerns.
QuestSoft’s fifth annual compliance survey reaffirms compliance requirements that have kept lenders up at night for three years in a row will continue to be a high concern at least until January 2014.
The top two CFPB mandates mortgage bankers have been worrying the most for the third year in a row are truth-in-lending disclosures and good-faith estimate disclosure forms.
Up to 58.8% of the 425 lenders that participated in the 2013 QuestSoft annual compliance survey reiterated that
Also, “as-yet-undefined CFPB rulemakings” represent the highest concern for 52.7%.
Leonard Ryan, president of QuestSoft, warned that even though the CFPB is interested in working with industry leaders to facilitate the implementation and compliance process, “reforms and requirements can lead to stress and unforeseen consequences, especially if lenders are kept in the dark until the implementation date.”
Multiple regulations can “jeopardize compliance,” says Ryan, as for the third year in a row lenders are dealing with Dodd-Frank regulatory uncertainty, which at over 49% has consistently been “a high concern for lenders each year since the law passed.”
The lenders who participated in the 2013 survey provided feedback on nine compliance-related requirements and pending regulatory changes that keep their stress level up.
The Real Estate Settlement Procedures Act fee tolerance ambiguity is a high concern for 49.7% of these lenders, while the qualified mortgage rule is for 49.1%.
“Dodd-Frank changes are a long train running and will directly affect everyone involved in the mortgage lending industry from now up until January 2014,” he said.
High concerns include fair lending exams for 41.6%; increased Community Reinvestment Act
