For those of you curious about what TRID issues the CFPB has been finding in their exams, you don’t have to look any further than the Summer 2017 edition of the CFPB’s Supervisory Highlights. These are from the CFPB’s “first round” of exams when it comes to TRID and the CFPB does note that, for the most part, the Rule has been implemented “effectively”. Nevertheless, violations are going to occur.
Here are just a few of the issues the CFPB has seen when it comes to the Loan Estimate and Closing Disclosure requirements:
- Amounts paid exceeding tolerances;
- Failing to retain evidence of compliance with the Loan Estimate requirements;
- Charging an unallowed fee before receiving the intent to proceed;
- Not documenting the applicant’s intent to proceed;
- Waiving the required three-day Closing Disclosure review period without a bona fide personal financial emergency;
- Failing to provide a List with at least one available provider for each service that shopping is allowed for;
- Not disclosing amounts to be paid into an escrow account;
- Not including the information on when (date and time) estimated closing costs expire; and,
- Failing to disclose fees paid prior to closing on the Closing Disclosure.
Surprisingly enough, most of these seem to be fairly easy to correct as opposed to larger system issues. This is all the more reason to see if you are in compliance and make changes before your examiners’ next visit.
If you want more on the CFPB’s other findings, check out the January & February 2018 editions of our newsletter, Banking on BCC.
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!