The final Loan Originator Compensation Rule was released by the CFPB on January 20, 2013. The rule expands restrictions related to loan originator compensation, establishes additional licensing and registration requirements for some originators and the organizations that employ them, contains restrictions on contract provisions for dwelling-secured credits and prohibits the financing of single-premium credit insurance on dwelling-secured transactions. The final rule also requires policies and procedures to be established and expands record retention requirements. The majority of the requirements go into effect in January 2014, but some are effective in June of this year.
A final Appraisal Rule, also issued by the CFPB, amends The Equal Credit Opportunity Act (ECOA) by setting requirements to alert applicants of their right to receive a copy of any appraisal(s) and requirements for providing the appraisal(s) when a transaction is secured by a first lien on a dwelling. Don’t get confused, as this final rule is different than the joint final rule we announced last week in our blog. That final rule amends Regulation Z and applies to appraisals for higher-priced mortgage loans.
We are furiously digging into these and all of the recently issued final rules. We will provide more details via our newsletter, once we know more.
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!