CFPB Update. May Marvin Stone CFPB Program Manager

Transcription

1 CFPB Update May 2014 Marvin Stone CFPB Program Manager 1

2 About the CFPB Banks under a microscope Mortgage origination Mortgage servicing Loss mitigation Auto loans Student loans Servicemembers Civil Relief Act Consumer Complaint Database Remittance Deposits AfBA s Non-Banks now under Federal supervision and enforcement Audits off the record Third party risk ( You can outsource the work. ) What about title and settlement? at the Housing Policy Council What s your view on the CFPB? 2

3 Stewart and the CFPB On Main Street Response and input on Proposed Rule Response to Request for Information eclosing informal Pilot RFP Partner On Wall Street ATR/QM guidance 3

4 CFPB Areas of Focus Buyer Seller Broker Agent Builder Local Lender National Lender Title Agent Disclosures Controls Complaints Transformation 4

5 Effective Date August 1, 2015 Final Rule in November Forms finalized Loan Estimate 3 pages Closing Disclosures 5 pages Lender or Settlement can prepare / deliver 3-Day (Business Day) Rule Does not remove 3-Day Right of Rescission on refis $100 tolerance dropped 1/8% Apr instead Like TIL The New HUD approval process rekeying? Requirements for retention but not Standard Format May still need a disbursement statement Back to Itemized Fees with totals (GFEExpressQuote) UCD + HMDA = XRAY Pilots Beginning January /- New guides released 89 pages Lenders, Doc Providers & LOS integrations Fee engines renamed and itemized ** Personal feedback from two Realtors 5

6 CFPB Bulletin to Banks and Non-Banks stating they must use quality service providers. 6

7 ALTA Best Practices Roundtable 7

8 ALTA Best Practices Roundtable Best Practices Roundtable Meeting Regulatory pressures on banks (CFPB, OCC, FDIC) Title and settlement are most difficult to manage All lenders present support ALTA Best Practices We need to start somewhere-self Assessment Self-Certification is not an option Do agents know where they stand? What gaps? Target for self-assessments by August 1 st. 8

9 ALTA Best Practices 1. Current Licenses - Establish and maintain current License(s) as required to conduct the business of title insurance and settlement services. 2. Escrow Accounts - Adopt and maintain appropriate written procedures and controls for Escrow Trust Accounts allowing for electronic verification of reconciliation. 3. Privacy Program- Adopt and maintain a written privacy and information security program to protect Non-public Personal Information as required by local, state and federal law. 4. Settlement Processes - Adopt standard real estate settlement procedures and policies that help ensure compliance with Federal and State Consumer Financial Laws as applicable to the Settlement process. 5. Written Procedures - Adopt and maintain written procedures related to title policy production, delivery, reporting and premium remittance. 6. Insurance Coverage - Maintain appropriate professional liability insurance and fidelity coverage. 7. Complaints Process - Adopt and maintain written procedures for resolving consumer complaints. 9

10 ALTA Best Practices What.Not How 10

11 Think like a lender 11

12 Your Policies, Procedures and Internal Controls 12

13 CFPB Consumer Complaint Database reaches 300,000. Mortgages #1 and rising! The crown jewel of CFPB 13

14 Lenders and Consumer Complaints 14

15 Complaint Response 15

16 CFPB Exams 16

17 CFPB Exams 17

18 CFPB Exams 18

19 National Lender on Complaints The last thing we want is to have a CFPB Exam or OCC MRA audit where they review consumer complaints and find that our settlement providers have no process for capturing or resolving complaints. It makes everybody look bad. Gerardo Cacares Bank of America VP, Title & Settlement Strategy 19

20 Stewart s Consumer Complaint Process 20

21 Announced in November Too many disclosures Too paper intensive Not enough education Not enough communication No statutory authority or mandate for change RFI in January with 476 responses Forum held in April Surprise change in focus to eclosings Genesis for lender projects 21

22 Consumers speak out..and industry agrees! 22

23 CFPB produces Mortgage Closings Today The CFPB's long-term vision for the closing process is an empowered, knowledgeable homebuyer experiencing a more efficient, consumerfriendly process. Through its initial research and outreach, the CFPB has identified two potential solutions that could contribute to this vision and address key challenges and frustrations for consumers and industry 23

24 CFPB s Options: Private Enterprise or..regulators 24

25 CFPB s Options: Private Enterprise or..regulators 25

26 CFPB Launches eclosing Pilot Short fuse Two phases 90 Days Partnership Required Lender Settlement Technology 26

27 eclosing Up Close Stewart conducts first eclosing in 2005 Stewart conducts first FHA eclosing 2014 Stewart participating in RFP Phase 1 Stewart patent on enotarization Lender response to recent events DocMagic s role in eclosing 27

28 Title Agency of the (Near) Future A look at Wells Fargo s Wish List 1. Monthly listing of valid agencies for C.O.R.E. 2. Real time validation of agents (order, docs, signing, funding) 3. Electronic ordering, routing, fulfillment with trailing docs 4. Excellent scorecards 5. No complaints.or at least quality processes for handling 6. Closing Revamp capable 28

29 1. Stewart.com/cfpb 2. Talk to your lenders 3. Be the expert 29

30 Be Proactive Talk to your lenders / Realtors Implement and Support ALTA Best Practices Prepare your Policies and Procedures Prepare your Due Diligence Response Plan National Settlement Services Summit Inman San Francisco Safe with Stewart 30

31 Questions? Q&A 31

32 Thank you! 32