When 2010 RESPA changes were on the horizon, the industry clung to the promise of enforcement leniency as we adapted to new concepts and forms. There’s no such pledge by the CFPB with this round of changes. CFPB Director Cordray has noted, “People have had close to two years to get ready for this. Nobody should be surprised by this.”
Cordray made note of the CFPB’s efforts to assist in implementation efforts by conducting webinars and issuing various tools. Director’s Cordray’s comments seem to make clear the expectation that creditors have familiarity with the information the CFPB has made available. After all, these webinars and other tools on the TILA-RESPA Integrated Disclosure Rule Implementation page are free of charge and available around the clock. Just make sure that you check back often to be alerted to any updates.
The CFPB’s training and tools need to be taken full advantage of, but also make sure you’re taking full advantage of other training opportunities as well. Seek out as much information as you can. Of course, even then there will still be things that are unclear. After all, this is really the case with most regulations. For those items, document and understand the logic you used for making the decisions you did.
We can hope for leniency for those requirements that are unclear or seemingly subject to different interpretations. There should not be the expectation for leniency, however, for items that are clearly addressed in the rule itself or that the CFPB has otherwise addressed. Will you make mistakes? Absolutely, but hopefully they will be technical and the exception rather than the rule and you can demonstrate corrective action taken (Audit, Train, Audit, Train)!
Don’t wait for your next exam when violations have already occurred to learn what you don’t know or fully understand. Don’t be surprised by this.
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!