The Obama administration has designated July 21, 2011 as the date the Consumer Financial Protection Bureau will take over enforcement of RESPA, TILA and other federal consumer protection laws that directly impact mortgage bankers.
By July, administration officials expect all the consumer regulatory and enforcement staffs at the federal banking agencies will be transferred to the CFPB and ready to enforce the Real Estate Settlement Procedures Act, the Truth in Lending Act, and the other consumer statutes outlined in the Dodd-Frank regulatory reform bill.
Last week President Obama appointed Congressional Oversight Panel chairman and Harvard law professor Elizabeth Warren to head the effort to get the CFPB up and running.
The official July 21 transfer date also triggers the effective dates of other provisions in the Dodd-Frank bill, according to attorneys at K&L Gates.
The new preemption standards for national banks and federally chartered thrifts take effect on the designated transfer date. Also, many of the effective dates and rulemaking deadlines for risk retention and other mortgage reforms are tied to the designated transfer date.
