Going Easy On RESPA?
By David Dickinson
In our February 2010 Newsletter, I wrote an article about the HUD Moratorium on RESPA enforcement while the banking industry gets used to the new rules. I indicated that regulators had not issued a similar advisory and suggested that I didn't feel bankers should take advantage of any "grace" period.
While teaching at the ABA National Compliance School last week, I had breakfast with two regulatory senior officials - one from the OCC (Washington level) and one from the OTS (Atlanta Regional Office). We discussed this issue and both indicated their regulatory agencies were not telling their examiners to "take it easy". They also stated they were not aware of any difference at the FDIC, FRB or NCUA. One said "How can we tell our field examiners to not be too hard? What does that mean? We're citing violations of RESPA just like we always have. If we make a referral to HUD, they might take it easy on the bank, but we really can't do that." Sorry.
Then again, my conversations with many field examiners indicate they are still learning the new rules too. Most have a "common sense" approach when new regulations are written and shouldn't be too tough on technical issues. We'll have to wait and see. Let us know how your next compliance exam goes. We'll pass on the word (confidentially, of course).