Extract from Jim Gill’s article “An Overview of Compliance Regulations for the Mortgage Industry”
When it comes to making sure financial data is safe and meets compliance regulations, understanding the different regulatory bodies that affect the mortgage industry is a vital first step. Here are just a few to consider.
CFPB
The Consumer Financial Protection Bureau is a U.S. government agency dedicated to making sure you are treated fairly by banks, lenders, and other financial institutions.
This agency’s Code of Federal Regulations (CFR) contains the official text of agency regulations and is updated annually. There are a number of regulations concerning the mortgage industry ranging from the Equal Credit Opportunity Act, to Mortgage Advertising, to the Privacy of Consumer Financial Information. These are just a few of the many regulations that may require archival record-keeping to prove compliance.
Regulation B: Equal Credit Opportunity Act
The purpose of this part is to promote the availability of credit to all creditworthy applicants without regard to race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract); to the fact that all or part of the applicant’s income derives from a public assistance program; or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The regulation prohibits creditor practices that discriminate on the basis of any of these factors. The regulation also requires creditors to notify applicants of action taken on their applications; to report credit history in the names of both spouses on an account; to retain records of credit applications; to collect information about the applicant’s race and other personal characteristics in applications for certain dwelling-related loans; and, to provide applicants with copies of appraisal reports used in connection with credit transactions.
