A survey of 71 Mortgage Bankers Association members revealed about one-third of them had not tested their new systems, and half of the respondents believe the new rules will lengthen the home-buying process and perhaps add costs to consumers, neither of which would be healthy for the industry.
The American Bankers Association (ABA) is concerned about the clarity of the rules, and that banks find it difficult to comply with these reforms. As scotmanguide tells MHProNews, a bill in the House of Representatives would extend the grace period until Feb. 1, 2016.
The industry has to produce new forms and change the way it discloses information to the buyer. It is also unclear where the trigger is that will unleash the might of the CFPB, or what might constitute a good faith effort to comply with the regs.
At the same time, two-thirds of the MBA respondents said they are ready and do not expect problems.
Tim Anderson, director of eServices at DocMagic, a document and compliance vendor, said, “It is just typical of this industry to push back on anything that is new. They don’t adapt well, especially if it is technology, and then [there is] the mistrust of this agency.”
He stated the problems will not come until late next year when the CFPB starts auditing and possibly imposes hefty fines for non-compliance, which could mount up at the rate of $1,000. per day. However, CFPB Director Cordray said at a Senate hearing the agency’s approach will be more corrective than punitive, and that federal regulators will issue a letter explaining their policy.
CFPB spokesman Samuel Gilford reiterated the agency is seeking good-faith compliance. ##
(Image credit: housingwire)
