Lenders on Edge About Possible CFPB Regulation Changes
According to a survey of over 500 lenders by QuestSoft, The Consumer Financial Protection Bureau’s (CFPB) mandates and deadlines still top lenders’ compliance concerns. CFPB regulations have remained the top concern listed in the survey since 2012, the year after the bureau was founded.
“Compared to last year’s survey, lenders appear more weary than ever of the CFPB’s rules, as non-CFPB issues are seen as increasingly lower priorities,” said Leonard Ryan, founder and president of QuestSoft in a press release. “It seems the message of the survey is that for many lenders, the mortgage environment has become highly dependent on the box of lending that the CFPB rules are creating.”
Of the more than 500 lenders surveyed, 62.2 percent ranked the Qualified Mortgage rule as a high concern. Other CFPB rulings such as Ability-to-Repay, Truth in Lending and Good Faith Estimate disclosure forms also ranked among top concerns for more than half of the respondents.
The Consumer Financial Protection Bureau was the result of the financial crisis of 2007-08, and was put into place by the Dodd–Frank Wall Street Reform and Consumer Protection Act. It was intended to consolidate responsibilities of the National Credit Union Administration, the Federal Reserve, and the Department of Housing and Urban Development, among others.
Outside of the CFPB, lenders expressed concern over the Real Estate Settlement Procedures Act fee tolerances, with 45 percent of respondents expressing high concern. Fair Lending Exams also ranked 40 percent. The growing cost of vendor management was also cited as a growing concern, as the cost of processing compliance requests has grown significantly.
Application processing software can help lenders feel more confident about their about their loans meeting CFPB regulations. Investing in the proper software can alleviate concerns for both lenders and borrowers.
