*Stay Ahead Of The New CFPB Docs*
**By Tony Garritano**
***The Consumer Finance Protection Bureau was busy last month. We saw a lot of new rules come our way. However, vendors are ready. For example, ClosingCorp.’s data services will enable clients to remain compliant with any changes to mortgage disclosure requirements, which are expected to be finalized in 2013 by the Consumer Financial Protection Bureau (CFPB).
****ClosingCorp’s SmartGFE Service, a one-click, tool with guaranteed data that populates a lender’s good faith estimates (GFE), and its SmartGFE Calculator, which generates real-time title and settlement rates, transfer taxes and recording fees, constantly account for any regulatory changes and allow users to remain up-to-date regardless of revisions to disclosure forms, rules, and local practices. The company’s compliance guarantee will continue to assure customers that the data provided is accurate, protecting them from costly RESPA-related tolerance violations.
****“For some time the final outcome of the CFPB’s regulatory activities have been uncertain,” said Paul Mass, president of ClosingCorp. “Pending rule changes have created significant unrest among companies that must make considerable adjustments to their business processes and systems under tight deadlines related to every change. Instead, lenders leveraging our SmartGFE tools can avoid the anxiety and pressure associated with new regulations. Compliance no longer has to require exorbitant time and expensive manual processes, and lenders can still eliminate costly tolerance violations, which are common in far too many settlements.”
****In July 2012, the CFPB issued a 1,099 page proposed rule which, among other changes, implemented Congress’s mandate to integrate TILA with the GFE and HUD-1 forms. It was just over two years ago that HUD last overhauled the GFE and HUD-1 forms and introduced the burden of “tolerance violations” on lenders who did not provide accurate GFEs in a timely manner. The July proposal seems to put an even higher premium on accurate and timely GFEs. Public comment on the new rule ended in early November 2012. Publication of the final rule is expected in the third quarter of 2013, and the effective date should be a reasonable time thereafter.
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at firstname.lastname@example.org.