Recently the CFPB indicated they will be “sensitive” to lenders that have shown a good faith effort to comply with the new requirements. So, what exactly does that mean?
In a letter to the American Bankers Association, the CFPB noted that it will consider “the institution’s implementation plan, including actions taken to update policies, procedures, and processes, its training of appropriate staff; and, its handling of early technical problems or other implementation challenges”. Any clearer?
Despite this indication from the CFPB, ABA Executive Vice President Bob Davis has pointed out that regulators can’t shield lenders from private litigation. So while you might not be cited in an exam, you could still be sued. For that reason, there has been a push for a temporary legal safe harbor to give lenders who are trying their best to comply some protections while they work out the kinks. The good news is that the House has passed a bill to do just that…provide some form of protection to lenders until February 1, 2016. The bad news is that if the bill makes it through the Senate, it sounds as if a veto by the President is possible, and actually quite likely.
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!