WASHINGTON – July 18, 2011 – The newly created Consumer Financial Protection Bureau (CFPB) will be taking over the responsibility next week of enforcing the Real Estate Settlement Procedures Act (RESPA). The Department of Housing and Urban Development has been the RESPA enforcer up to this point.
The CFPB’s new authority over policing RESPA, along with the Truth in Lending Act, will start officially on July 21, and will include monitoring RESPA’s anti-kickback provisions as well as proposing a new model loan disclosure form for mortgages.
The bureau has already started to work on a new standardized loan disclosure form, which will consolidate the Good Faith Estimate (GFE) and the TILA disclosure form into a single, simplified form. Congress has mandated that the CFPB propose a new model loan disclosure form by July 21, 2012.
The Consumer Financial Protection Bureau will have a big job as a RESPA enforcer with the complaint caseload “extremely heavy” – more than 1,500 cases opened in the last 18 months, Teresa Payne, HUD’s associate deputy assistant secretary for regulatory affairs, said in testimony this week at a congressional hearing.
Source: “New Consumer Bureau to Police Real Estate Kickbacks,” Inman News (July 14, 2011)