*The CFPB Concerns Most Lenders*
*Research Reveals Compliance Woes**
***The Consumer Financial Protection Bureau has made designing a new disclosure form that combines the Truth in Lending Disclosure (TIL) and Good Faith Estimate (GFE) a top priority in 2012. The pending reform also ranks as lenders’ greatest compliance concern according to QuestSoft’s fourth annual compliance survey. What else are lenders concerned about? Here’s the full details:
****The combined TILA/GFE disclosure was cited by 48 percent of lenders as a high concern, with an additional 33 percent citing the reform as at least of medium concern. The survey, which polled 426 lenders on their level of anxiety for regulatory changes, also found fair lending exams, continued refunds and losses from the Real Estate Settlement Procedures Act (RESPA) fee tolerances (40 percent highest concern) and Dodd-Frank rule making (42 percent highest concern) as top issues.
****“The CFPB has been testing new disclosure forms for the past year, and we are expecting the final rule to be announced within weeks,” said Leonard Ryan, president of QuestSoft. “Factor in the CFPB’s position that consumers who do not receive proper disclosure should have the right to walk away from a loan, and it is no surprise that disclosure compliance is the top concern.”
****Ryan added that the overwhelming number of Dodd-Frank laws remains a high concern due to the uncertainty of what specific rules will be implemented, and their enforcement deadlines. RESPA Fee Tolerances were in the top three concerns for the second year in a row, polling as the second highest area of concern for 2011.
****“Dodd-Frank has listed seven new major reforms as its mandated priorities for 2012, but there is still uncertainty. These seven reforms are all required to have the final rule on or before January 21, 2013, and yet what exactly they will entail is unknown,” Ryan said. “This uncertainty naturally causes stress among lenders. Additionally, there is concern that the rush to comply with the law will result in final rules with unintended consequences.”