CFPB Releases Latest Supervisory Highlights Report
March 10, 2016
In its latest Supervisory Highlights report, the Consumer Financial Protection Bureau (CFPB) shared recent supervisory observations in the areas of consumer reporting, debt collection, mortgage origination, remittances, student loan servicing and fair lending. One of the bureau’s goals is to provide information that enables industry participants to ensure their operations remain in compliance with federal consumer financial law. According to the CFPB, the findings reported in the report reflect information obtained from supervisory activities completed during the period under review as captured in examination reports or supervisory letters.
The report highlighted supervision work generally completed between September 2015 and December 2015. Recent supervisory resolutions have resulted in restitution3 of approximately $14.3 million to more than 228,000 consumers.
Examiners concluded at one or more institutions that a weak compliance management system allowed violations of the Real Estate Settlement Procedures Act and Truth in Lending Act to occur. For example, one or more supervised entities failed to allocate sufficient resources to ensure compliance with Federal consumer financial law.
As a result, these entities were unable to institute timely corrective-action measures, failed to maintain adequate systems, and had insufficient preventive controls to ensure compliance and the correct implementation of established policies and procedures. Supervision notified the entities’ management of these findings, and corrective action was taken to improve the entities’ compliance management systems.
ALTA created its “Title Insurance and Settlement Company Best Practices” to help lenders meet regulatory requirements for third-party management.
Contact ALTA at 202-296-3671 or communications@alta.org.