CFPB Addresses Military, Mortgage Disclosures, and Credit Unions

The Consumer Financial Protection Bureau (CFPB) is ramping up after last month’s installation of Director Richard Cordray. Three of its recent major actions include establishing an advisory council for credit unions, tracking financial scams targeting the military and revamping mortgage disclosures.

The new advisory council for credit unions is intended to help the agency gauge how its actions are impacting the credit union industry. Cordray noted that credit union interests are “often aligned with those of consumers” and said that this type of business model, which emphasizes helping consumers, is the type of business model that the CFPB wants to encourage in the larger financial marketplace. Cordray’s statement is available on the CFPB website.

On military matters, the CFPB is joining forces with the Department of Defense and state attorneys general to create the Repeat Offenders Against Military database (“ROAM”), a system that will track companies and individuals that attempt to defraud current and former servicemembers and military families.

ROAM, which the CFPB noted is the “first database of its kind,” will serve as a “central mechanism for officials to run a quick search for actions taken by various federal, state and local law enforcers” against financial schemers that target the military. The press release is available on the CFPB’s website.

Finally, the CFBP has come up with two different versions of a sample mortgage-closing document as part of its Know Before You Owe project. The CFPB said the two new sample mortgage-closing forms “use a format for closing costs that’s similar to the format on the initial disclosure to enable the two forms to work well together.” Each of these forms include information on the principal, interest rate, and total monthly payment amounts and also address various closing costs, taxes, fee changes and other information. The sample mortgage forms are available online, and they are also being tested in the field in Philadelphia.

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Business Solutions, Compliance.