Do you work for a mortgage company, real estate company, or financial services organization? Are you having trouble understanding what the Consumer Finance Protection Bureau is and what it does? Are you having trouble explaining CFPB to your staff? View this colorful summary of the History of the CFPB and the Mortgage Industry to learn more!

1. Regulate
the financial industry
Has authority over 19 regulations
governing consumer finance,
including broad enforcement
Analyze and study the financial landscape
to make informed improvements
Manage complaints about
financial institutions
Restrict unfair, deceptive and
abuse acts or practices
“Nondepository
Covered Persons”
any covered person providing
origination, brokerage or
servicing of consumer real estate loans
“Depository
Institutions and
Credit Union
Covered Persons”
greater than $10 Billion in assets
“Service Providers”
any person that provides a material service
to a covered person in connection with the
offering or provision by such covered person
of a consumer financial product or service
Elizabeth Warren,
a Harvard law
professor, presents
the idea for a
consumer protection
agency
2007
Financial Collapse
2009
CFPB first proposed to congress
The Dodd-Frank Wall Street
Reform and Consumer
Protection Act of 2010
(Dodd-Frank Act)
established the CFPB
with Title X
Priorities include watching over:
Mortgages
Credit Cards
Service
MembersStudent Loans
2011
President Obama
nominates
Richard Cordray,
the former
attorney general
of Ohio, head of CFPB
Until the appointment
of Cordray,
the CFPB has limited authority
Changes to impact servicing standards, including:
• Final Rules to RESPA and TILA
• Early notice of delinquency
• Requirements for direct and ongoing access to servicer personnel
• Stricter foreclosure process, especially when conducting a foreclosure sale
• Legal obligations for bank and nonbank servicers to protect the consumer while transferring loans
CFPB turns its focus to compliance in the mortgage industry,
by issuing final rules
The final version of the Ability-To-Repay Rule including:
• Modifications to the Good Faith Determination of Borrower’s Ability to Repay
• Revisions to Points and Fees under High Cost Mortgages, Open and Closed End
• Transactions impacting the Home Ownership and Equity Protection Act (HOEPA)
and defining the Qualified Mortgage (QM)/Ability-to-Repay (ATR) Rule
The QM/ATR Rule is significant because:
• This rule will determine the loan products available to consumers for the indefinite future
• Intended to protect consumers from mortgages that are too high for them to repay
• Also intended to protect borrowers from loans that have lower introductory rates
• Requires lenders to obtain and verify information and removes the ability for loans
without documentation
Higher-Priced
Mortgage Loans (HPML)
• Expanded escrow
account requirements
• Additional appraisal
requirements
• Revised thresholds for
determination
High-Cost Mortgages
• Modified Counseling requirements
• Revised thresholds for determination
• Revised points and fees calculations
YOUR BILL
TOTAL: $
CFPB Releases Consumer Complaint Data
The launch expanded the CFPB’s Consumer Complaint Database significantly
from about 19,000 credit card complaints to more than 90,000 complaints
on mortgages, student loans, bank accounts and services, other consumer loans,
and credit cards
2013
Some Milestones from
this Year... So Far
Sources:
The CFPB Website
http://www.consumerfinance.gov/
AllRegs Compliance Commentary: 2011 - The Year of the Bureau of Consumer Financial Protection. What’s Ahead for 2012?
http://solutions.allregs.com/2011-the-year-of-the-bureau-of-consumer-financial-protection/
AllRegs Compliance Commentary: 2012: A Year for Proposals, 2013: A Year for Action
http://solutions.allregs.com/2012-a-year-for-proposals-2013-a-year-for-action/
AllRegs Compliance Commentary: 2013 Regulatory Reform Series: Qualified Mortgage, High Cost Mortgages and Higher-Priced Mortgage Loans
http://solutions.allregs.com/may-the-regulators-be-ever-in-your-favor/
AllRegs Compliance Commentary: CFPB Announces Implementation Plan for New Mortgage Rules
http://solutions.allregs.com/cfpb-announces-implementation-plan-for-new-mortgage-rules/
AllRegs Compliance Commentary: CFPB Finalizes Mortgage Servicing Rules under RESPA and TILA
http://solutions.allregs.com/cfpb-finalizes-mortgage-servicing-rules-under-respa-and-tila/
AllRegs Compliance Commentary: CFPB Issues Ability-to-Repay and Qualified Mortgage Final Rule
http://solutions.allregs.com/cfpb-issues-ability-to-repay-and-qualified-mortgage-final-rule/
AllRegs Compliance Commentary: CFPB Issues Rule to Protect Consumers from Irresponsible Mortgage Lending
http://solutions.allregs.com/cfpb-issues-rule-to-protect-consumers-from-irresponsible-mortgage-lending/
AllRegs Compliance Commentary: CFPB Monitors Mortgage Servicing Transfer Activity
http://solutions.allregs.com/cfpb-monitors-mortgage-servicing-transfer-activity/
AllRegs Compliance Commentary: CFPB Releases Consumer Complaint Data
http://solutions.allregs.com/cfpb-releases-consumer-complaint-data/
Consumer Financial Protection Bureau lays out implementation plan for new mortgage rules by the CFPB
http://www.consumerfinance.gov/pressreleases/consumer-financial-protection-bureau-lays-out-implementation-plan-for-new-mortgage-rules/
AllRegs Compliance Commentary: Financial Reform: The Bureau of Consumer Financial Protection
http://solutions.allregs.com/pages/Bureau-of-Consumer-Financial-Protection.html
The Woman Who Knew Too Much
http://www.vanityfair.com/politics/features/2011/11/elizabeth-warren-201111
Servicing Examinations
Alternative Mortgage
Transaction Parity Act
Interim Rule
Consumer Complaints
Whistleblower
Protection Program
Ombudsman Office
RESPA/TILA disclosures,
“Know Before You Owe”
Strong focus on issues
related to Servicemembers
Redefined confidential
treatment of privileged
information
Re-issuance of existing
regulations now governed
by the CFPB for public
comment
• Restrictions on compensation including
proxies or loan term restrictions on
compensation
• Origination points and fees and
zero-zero alternative
• Affiliate fees
• The effect of high-cost restrictions
• Bona fide discount points
• Credit insurances
• Mandatory arbitration
Equal Credit
Opportunity Act
Appraisal Disclosure
modification
Loan Officer Compensation
Revisions Include:
2010
2008
2012
Educate the public and consumers about
financial decisions and products
“Covered Persons”
any person or affiliate
that provides a consumer
financial product
What Does
the CFPB Do?
What Does
the CFPB Regulate?
The history of the CFPB
is relatively short, but the impact
this young bureau has over the mortgage
industry is undeniable.
John Doe
Redefined rulemaking
procedures by posting of
regulatory documents on its
website as official, in lieu of the
federal register publication,
began regulating “larger participants,”
such as credit reporting agencies
The CFPB
begins
considering
reformation to these
mortgage topics
Controversy and a filibuster
surround the appointment of
Cordray, so President Obama
appoints him
during a recess
The CFPB is able
to start
lawmaking at
full speed
Some Milestones from this Year Include
the Following:
Fall 2012:
CFPB releases guidance
on a Compliance
Management System –
as part of its
examination manual
AllRegs
All
Reg
s
Disclaimer: The information presented in this infographic is not meant to be nor should it be construed as advice of legal counsel. The applicability of the information
contained herein will vary based on the nature of each lending institution's business, under what law it was created, and its loan products and procedures. Readers
are strongly urged to consult with their legal counsel and/or contact local counsel as appropriate in the various states and jurisdictions to determine the applicability
of the materials contained herein to the specific facts and circumstances of each organization's programs and products and to identify other law applicable to its
business operations. The information contained herein was not reviewed or approved by counsel in the respective jurisdictions.
Copyright 2013 AllRegs. All Rights Reserved.
To learn more about AllRegs CFPB Resources,
including the Compliance Management System, visit
http://solutions.allregs.com/compliance-management-system/.
www.allregs.com
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