July Dodd-Frank Progress Report

July Dodd-Frank Progress Report

Dodd-Frank was signed into law in 2010. The Dodd-Frank Act created the Consumer Financial Protection Bureau (CFPB). The CFPB was founded in July of 2011. The Dodd-Fank Act gave the CFPB rulemaking authority. Davis Polk has just released its progress report on that rulemaking progress.

Dodd-Frank / CFPB Rulemaking

There are 390 total rulemaking requirements in the Dodd-Frank Act. These requirements span the breadth of the financial industry. 274 (70.3%) of those rules have been written and put into effect. However, 36 (9.2%) have been written, proposed, but are not yet effective. Sadly, 80 rules (20.5%) have yet to be written nor proposed. That is almost 30% or 116 rules still to come and impact how we work. What are these rules going to look like?

The mortgage industry is waiting on 19 rulemaking requirements to be written yet. An additional 30 rulemaking requirements, within consumer protection category, that also have not been written yet, may have a great impact on the mortgage and real estate industry.

Mortgage Industry Impact

It has been quite a battle and struggle with these new proposals. The CFPB has not been receptive to efforts to lobby for common sense revisions. The recent TILA-RESPA Integrated Disclosure Rule (TRID) is a good example. The mortgage and real estate industry worked hard to inform the CFPB of issues and problems and were greatly ignored. There were many unintended consequences of this implementation. Now, CFPB has proposed some changes that reflect the efforts of the industry to truly help consumers. The fight is not over, nor are the surprises. Twice a year, the CFPB publishes an agenda of its planned rulemaking activities. The CFPB has published a list of their next set of rules they are working on. There are several key proposed rules, on this list, that are going to impact RESPA (Reg X) and TILA (Reg Z).

Before issuing a final rule, the CFPB generally announces and explains its proposals to address an issue and invites public comment. It is long reading, but very important to those in the real estate and mortgage industry.

About Kevin Hardin

Kevin W. Hardin is a 22 year veteran of the Mortgage and Real Estate industries. He holds a Juris Doctor (JD) degree from Concord Law School and a CMB (Certified Mortgage Banker) from the Mortgage Bankers Association. He is a Senior Loan Officer at HomeStreet Bank. He works with Borrowers, Attorneys, Title Companies, Real Estate Agents and Mortgage Companies on mortgage law issues.

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