In preparation of the mortgage rules due to take effect next year, the Consumer Financial Protection Bureau released updated exam procedures on Thursday.
The CFPB first issued exam guidance in June. "The newest updates cover how the CFPB will examine lenders for compliance with rules governing ability-to-repay standards, qualified mortgages, high-cost mortgages and appraisals for higher-priced mortgages," writes American Banker's Rachel Witkowski.
"We are committed to transparency around our examination process," CFPB Director Richard Cordray, said in a press release. "So we have worked hard to provide industry with advance notice of what we will be expecting. That, in turn, will improve compliance and benefit consumers."
The press release also stated that the agency, created under the 2010 Dodd-Frank Act, is "coordinating with other federal government regulators that also conduct examinations of mortgage companies and financial institutions to ensure all regulators have a shared understanding of the CFPB's new rules."
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