CFPB Mortgage Rules Change Looms Large
By the time next year rolls around, Truity Credit Union in Bartlesville, Okla., will be ready to comply with new mortgage loan requirements from the Consumer Financial Protection Bureau. Thanks to policies and procedures already in place, the final adjustments won’t likely be traumatic for the credit union.
“We are well-positioned and well-prepared for the changes coming down, but we’ve spent a lot of time getting to that point,” said Mark Wilburn, chief lending officer for Truity, which was known as 66 Federal Credit Union until early August. “We exercised our own good judgment, as did most credit unions, and weren’t very far out on a limb, anyway.”
A key issue both credit unions mentioned was the need to automate mortgage loan processes in order to comply with the new standards while maintaining high service levels. In the case of smaller institutions, vendor support will be critical to complying with the January deadline, said Kelly Graham, president and CEO of FICS, a mortgage loan origination and servicing software provider based in Addison, Texas.
FCIS had already started making changes to its Mortgage Servicer system last year to assist users in complying with the CFPB mandates, she said. Unfortunately, continued regulatory adjustments like rule changes the CFPB made in July compromise vendors’ abilities to help their clients comply with the deadline.