The Consumer Financial Protection Bureau’s (CFPB) new mortgage disclosure forms and implementing rules don’t take effect until August, but Richard Cordray, the bureau’s director, said lenders already should be making preparations for the changes.
In a speech last to the National Association of Federal Credit Unions, Cordray noted that the bureau gave industry participants 21 months to implement the new rules and forms. Half of that preparation period now has passed.
Cordray said the bureau will publish a readiness guide in the next few months to give industry participants a broad checklist of things to do to prepare — such as updating policies and procedures and providing training for staff.
And whether the implementation burden thus far has been handled by title and settlement agents or technology providers, Cordray said that everyone involved in the process must begin the preparation process.
“Lenders should already be working on the new rule and getting ready for next summer,” Cordray said. “Implementation of the new rule will require significant changes to business operations and technology platforms, which may require close collaboration with third-party service providers. While many mortgage institutions are already deep into the process of implementing these changes, we want to make sure that everyone understands the need to be focusing on August 2015 right now.”
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