Consumer Financial Protection Bureau

Washington, D.C. – Today the Consumer Financial Protection Bureau (CFPB) launched an online tool to provide consumers with easy access to public mortgage information collected under the Home Mortgage Disclosure Act (HMDA). The tool enables greater transparency by helping inform people of trends in their local mortgage markets.
“Just as the real estate motto ‘location, location, location’ was true before the recent financial crisis, it was true for the crisis. Every community was affected differently,” said CFPB Director Richard Cordray. “Our tool puts valuable information into the hands of the public in an accessible way, so they can understand what is happening in their local mortgage markets. A more transparent mortgage market will lead to a better marketplace and better outcomes for consumers.”

The CFPB’s online HMDA tool is available at: www.consumerfinance.gov/hmda

New Mortgage Disclosure Form to Help Safeguard Against Default: CFPB

The new Consumer Financial Protection Bureau (CFPB) aims to avert at least one hitch in the home loan process that some market experts say started a whirlwind of mortgage delinquencies - ensuring consumers have a clear understanding of the cost associated with their mortgage. CFPB unveiled two prototypes for a new regulatory disclosure form Wednesday that the agency will begin testing this week. Each of the prototypes combines the two-page TILA disclosure and the three-page RESPA disclosure into a single, abbreviated form.

Each of the prototypes combines the two-page Truth in Lending Act (TILA) disclosure document from the Federal Reserve and the three-page Real Estate Settlement and Procedures Act (RESPA) disclosure from HUD into a single, abbreviated form which lenders will be required to present to borrowers within three days of application for a mortgage.

The new form will consist of two pages. The first will provide a basic overview of the core costs related to the closing of the loan and the monthly payment the consumer can expect, as well as whether or not the amount of that payment will change over time. Page two offers a more detailed explanation of the cost breakdown.

option A http://www.consumerfinance.gov/wp-content/uploads/2011/05/disclosure1.pdf
 


option B http://www.consumerfinance.gov/wp-content/uploads/2011/05/disclosure1.pdf

CFPB and State Regulators Announce MOU on Examinations, Enforcement

The federal Consumer Financial Protection Bureau implementation team, and the Conference of State Bank Supervisors recently signed a memorandum of understanding (MOU) to establish a foundation of state and federal coordination and cooperation for supervision of providers of consumer financial products and services.


A copy of the press release is available at:

http://www.csbs.org/news/press-releases/pr2010/Pages/pr-010411.aspx

Specifically, the state regulators and the federal CFPB announced they will work together to promote consistent examination procedures, to promote effective enforcement of state and federal consumer laws, and to minimize the regulatory burden and efficiently deploy supervisory resources.

The MOU also calls for state regulators and CFPB to consult each other regarding the standards, procedures, and practices for conducting compliance examinations of providers of consumer financial products and services, including non-depository mortgage lenders, mortgage servicers, private student lenders, and payday lenders.

United States: Consumer Financial Protection Act Update: No New Consumer Financial Rules to be Issued Until at Least July 2011

http://www.mondaq.com/unitedstates/article.asp?articleid=111906&email_access=on