On July 21, the Consumer Financial Protection Bureau takes over enforcement of several key regulations impacting mortgage lenders and banks.
The transfer of authority is required under the Consumer Financial Protection Act of 2010.
By the transfer date, the CFPB needs to consult with the current regulators handling the rules and orders then consider public comments from the impacted filing.
The Federal Reserve Board of Governors will hand over authority for Regulation Z, the Truth in Lending Act, to the agency.
The Real Estate Settlement Procedures Act, which is now enforced by the Department of Housing and Urban Development, will be enforceable by the CFPB.
The CFPB will also be empowered to enforce Regulation B, the Equal Credit Opportunity Act, as well as Regulation P, Privacy of Consumer Financial Information; Regulation C, the Home Mortgage Disclosure Act; and Regulation V., the Fair Credit Reporting Act.
Authority for registration of residential mortgage loan originators — currently the domain of the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Office of Thrift Supervision — will be granted to the new regulator. It will also take over from the OCC authority for adjustable-rate mortgages under the Alternative Mortgage Transaction Parity Act, though only as applied to non-federally chartered housing creditors.
Among regulations currently enforced by the Federal Trade Commission that will be enforceable by the CFPB are Mortgage Assistance Relief Services and Credit Practices.
On the banking side, the CFPB will take over responsibility for enforcement of Truth in Savings and Regulation E, Electronic Fund Transfers.
