Integrated Disclosure Leniency?

Recently the CFPB indicated they will be “sensitive” to lenders that have shown a good faith effort to comply Diane11with 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 Dean

Share This