Lending

Brace Yourself: CFPB's Lending-Related Changes in Full Swing

Act now to be ready for rapidly approaching mandatory compliance dates.

July 07, 2013
/ PRINT / ShareShare / Text Size +

The Consumer Financial Protection Bureau (CFPB) has fundamentally changed the way credit unions go about their day-to-day lending activities, CUNA Mutual Group’s Lauren Capitini told CUNA's America’s Credit Union Conference attendees Tuesday.

ACUC 2013 Lauren Capitini main“Credit unions must act now to prepare for rapidly approaching mandatory compliance dates, including those pertaining to mortgage changes and changes to international electronic transfers,” Capitini said at a Discovery breakout session. 

 

Capitini, a regulator compliance manager for CUNA Mutual, said CFPB is moving full speed ahead, and its new rules have an enormous impact on credit unions’ operations.

“In the long run, you will be better served investing time, money, and energy into compliance now,” Capitini said. “Understand how your credit union needs to adapt to meet the CFPB’s new rules, and then develop a strategic plan to implement these changes, which will include changes to the way you do business, your documents, and policies and procedures.”

Capitini reminded the audience time is short. New remittance transfer rules have a mandatory compliance date of Oct. 28. Five of the CFPB’s seven new mortgage compliance rules have January 2014 effective dates:

Ability-to-Repay
High-Cost Loans (HOEPA) & Homeownership Counseling
Mortgage Loan Originator (MLO) Compensation
Mortgage Servicing (Reg Z & Reg X)
Reg B Appraisals and Higher-Priced Mortgage Loan (HPML) Appraisals

The last rule goes into effect on Jan. 18, 2014; the others have an effective date of Jan. 10, 2014.

“Stay focused, take time to understand the changes, and make adjustments where necessary,” Capitini encouraged attendees. “Doing these things, combined with a positive outlook and understanding what you can control, will do more for your credit union than focusing on the pains of change.”

Capitini wrapped up the session by giving attendees a glimpse of what’s on her radar for regulatory compliance

Payday lending;
Overdraft protection; and;
Changes to Reg CC.

“Keep in mind, the CFPB isn't done yet,” Capitini said. “Looking at what the CFPB plans to accomplish in the next couple of years is daunting, but you have the tools to succeed as long as you start adapting now.”

Be sure to visit News Now and Credit Union Magazine frequently this week to keep up with all the ACUC action in New York City. You can also follow ACUC on Twitter using the links below:

News Now LiveWire
Credit Union Magazine
CUNAVerse

Post a comment to this story

heroes

What's Popular

Popular Stories

Recent Discussion

Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory (www.appreciationatwork.com/assess) will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

Your Say: Who should be Credit Union Magazine's 2014 CU Hero of the Year?

View Results Poll Archive