Compliance Center: CFPB Updates Interpretive Rule on Homeownership Counseling

The Consumer Financial Protection Bureau (CFPB) issued a final interpretive rule on how to provide mortgage applicants with a list of local homeownership counseling organizations.  The interpretive rule restates guidance the CFPB issued in 2013, and provides further guidance for lenders who are building their own lists of housing counselors.  Lenders looking to build their own lists of local counselors can refer to the online tool on CFPB website.  The rule also includes guidance on the qualifications for providing high-cost mortgage counseling and for lender participation in such counseling. Other specific additions include new instructions about:

  • how to provide applicants abroad with homeownership counseling lists;
  • permissible geolocation tools;
  • combining the homeownership counseling list with other disclosures;
  • use of a consumer’s mailing address to provide the list; and
  • high-cost mortgage counseling qualifications and lender participation in such counseling.

 The updated rule will become effective when it is published in the Federal Register.

Compliance Question of the Week

Under the Customer Identification Program, must we verify the identity of an existing member who now wants to open another new account?

No. You do not have to verify the identity of an existing member who opens an additional new account. Under the CIP regulations, you must verify the identity of a “customer” who opens a new account. The definition of “customer” excludes a person that has an existing account; therefore, an existing member who opens an additional checking account would not have to be verified if the procedures you had when you opened the original account give you a reasonable belief that you know the true identity of your existing member.


Legal Briefs

National Credit Union Administration (NCUA)

The NCUA announced that it is rescheduling the Grant Initiative webinar that was scheduled on Wednesday, April 15 to Tuesday, April 28.Credit unions that wish to register for the webinar may do so here.

Consumer Financial Protection Bureau (CFPB)

The CFPB announced that it finalized the rule that suspends the quarterly submission of credit card agreements required under Reg Z. The rule suspends the submission of the agreements until April 30, 2016.

The CFPB issued a final interpretive rule on how lenders should provide a list of homeownership counseling organizations. The rule also includes guidance for those financial institutions that are building their own lists of counseling organizations.

The CFPB announced that it will hold a research conference regarding consumer finance. The conference will be held on May 7th and 8th

Federal Housing Finance Agency (FHFA)

The FRB released its minutes of the March 17th Federal Open Committee Meeting. The FRB also released the Summary of Economic Projections.

The FRB updated the Consumer Credit G.19 Report.

The FRB released a FAQ on its Regulatory Capital Rule. The FAQ includes the FRB’s definition of capital, different exposures, and credit valuation adjustments.

The FRB announced that it will be holding additional Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) Meetings.

Financial Crimes Enforcement Network (FinCEN)

FinCEN issued advisory FIN-2015-A001 regarding the FATF-Identified jurisdictions with AML/CFT deficiencies. 

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of April 16, 2015. The last update prior to this was April 14, 2015. 

Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News.