With January quickly approaching you are hopefully already aware that you will be required to provide a Homeownership Counseling list on RESPA covered applications received on or after January 10, 2014. Under the final rule, lenders can either use a tool created by the CFPB to generate the list or use data provided by the CFPB or HUD to develop a list.
The good news is, the CFPB recently announced their Homeownership Counseling list tool is now available. To use the tool, all you need to do is enter the borrower’s zip code and print the list. You can access the tool at:
If a lender chooses to develop their own list using data from the CFPB or HUD, it should contain the same elements as a list created from the CFPB’s tool. If you are looking to design your own list, the CFPB does provide some guidance. If you don’t anticipate having the ability to create your list prior to the January 10th effective date, you should direct consumers to the CFPB’s tool by providing the disclosure referenced in the bulletin accompanying the announcement.
Again, you have an option on how you want to comply; however, anytime a governing body issues their own tool, we recommend using it.
Diane joined Banker’s Compliance Consulting with over 10 years of compliance experience and over 15 years of experience within the financial industry. Diane is a Certified Regulatory Compliance Manager (CRCM) and has a Bachelor’s Degree in Sociology with a concentration in Criminal Justice. She is a graduate of the Schools of Banking Compliance School and has participated in various other training opportunities throughout her career. Diane understands firsthand the struggles banks face in building and maintaining successful compliance programs. Her experience and common sense approach to consumer compliance is a great asset to our clients.
Diane and her husband have two kids who keep them busy. She enjoys running and other sports and is a big Bugs Bunny fan! She’s a bit crazy in that she does enjoy reading some of these regulations and she’s a “crazy cat lady!” Her cat tales are hilarious!