CFPB Spotlights Future Priorities with Rulemaking Agenda Update
Federal agencies share regulatory agendas twice yearly, and the CFPB has recently published an update. Here is a quick summary of the key areas of focus. To no one's surprise, HMDA and TRID are at the top of the agenda's list.
The CFPB has posted an update to their rulemaking agenda. Federal agencies must publish regulatory agendas twice per year. This year, HMDA and TRID are at the top of the list.
Here is a quick snapshot of the agenda, which shines the spotlight on the CFPB’s areas of focus:
- Updates to Home Mortgage Disclosure Act (HMDA): The CFPB is working to finalize a proposed rule published back in August 2014 that would implement Dodd-Frank amendments to HMDA. In addition to adding new data fields (age, credit score, points and fees, value of property, debt-to-income ratio, loan-to-value ratio, denial reasons), the CFPB plans on implementing new standards for collecting data on mortgage loans and applications.
- The Bureau is on schedule to release a final rule in late summer 2015 (August time frame) with an implementation likely to start in January 2017. Once the TILA/RESPA Integrated Disclosures launch, you can expect a great deal of attention on HMDA by all industry stakeholders.
- Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) Integrated Disclosures: The CFPB plans to remain focused on implementing “TRID,” which consolidates and streamlines federal mortgage disclosures required under TILA and RESPA. Despite expressed industry concern by various parties, the rule will take effect on August 1, 2015.
- Follow-Up on Other Mortgage Rules: CFPB is working to address questions about the rules released in January 2013. The CFPB will also focus on the 2013 mortgage servicing rules (affect disclosures, early intervention process, and loss mitigation).
- Prepaid Financial Products: The CFPB published a proposal that would create comprehensive consumer protections for a range of prepaid financial products including prepaid cards, certain digital and mobile wallets. Protections include error resolution and limitations on liability. The Bureau also proposed general credit card protections to prepaid products that access overdraft services or credit features for a fee. The final rule is expected in early 2016.
- Payday, Auto Title, and Certain Other Loans: The CFPB has issued an outline of proposals. The CFPB is in the process of completing additional outreach and analysis.
- Overdrafts – The Bureau is conducting research and assessing whether rulemaking is warranted.
- Larger Participants – The CFPB is expected to finalize a proposal early this summer to define “larger participants” in the market for auto lending, building on previous rules defining larger participants in the markets for debt collection, credit reporting, student loan servicing, and international money transfers.
- Debt Collection – The Bureau is working on rules concerning debt collection.
- Arbitration – The CFPB is evaluating feedback on a preliminary report and considering whether rules governing arbitration clauses may be warranted.
Here is the “at a glance” timeline as currently outlined by the CFPB:
- 2015 – 3rd Quarter
- August 2015 Rule Implemented – TILA/RESPA Integrated Disclosures
- August 2015 Final Rule Expected – HMDA Plus
- Early Summer 2015 Final Rule Expected – Larger Participants Defined for Auto Lending
- 2015 - 4th Quarter
- Final Mortgage Rules Expected – Modify Requirements for Small Creditors (Mortgage)
- 2015 Proposed Rule Expected – Payday (Installment and Auto Title Loans)
- January 2016 Final Rule Expected - Prepaid Financial Products(Including Reloadable Prepaid Cards and Mobile Wallets)
- Spring 2016 Final Rule Expected – Mortgage Servicing
- Continued Research
- Debt Collection
TRUPOINT Viewpoint: As we prepare for the second half of 2015, it's important to keep an eye on upcoming regulatory changes. With such large changes on the horizon, the best approach to compliance is a proactive one. TRUPOINT Partners will continue to monitor developments and share our insights.