NEW YORK Credit unions need to plan for January, when a host of new rules enacted by the Consumer Financial Protection Bureau take effect, according to compliance experts speaking at CUNA’s annual America’s CU Conference.
“Credit unions need to act now to prepare for rapidly approaching mandatory compliance dates, including those pertaining to mortgage changes and changes to international electronic transfers,” said Lauren Capitini, CUNA Mutual Group’s regulatory compliance manager, during a breakout session yesterday.
“In the long run, you will be better served investing time, money, and energy into compliance now,” said Capitini. “Understand how your credit union needs to adapt to meet the CFPB’s new rules, and then develop a strategic plan to implement these changes, which will include changes to the way you do business, your documents, and policies and procedures.”
“Keep in mind, the CFPB is not done, yet,” Capitini said. “Looking at what the CFPB plans to accomplish in the next couple of years is daunting, but you have the tools to succeed as long as you start adapting now.”
Capitini noted that new remittance transfer rules have a mandatory compliance date of Oct. 28, and five of the CFPB’s seven new mortgage compliance rules have January 2014 effective dates:
Ability-to-Repay effective date Jan. 10, 2014
High-Cost Loans and Homeownership Counseling effective date Jan. 10, 2014
Mortgage Loan Originator Compensation effective date Jan. 10, 2014
Mortgage Servicing (Reg Z & Reg X) effective date Jan. 10, 2014
Reg B Appraisals and Higher-Priced Mortgage Loan Appraisals effective date Jan. 18, 2014.
