ABA Bank Compliance - September/October 2012

where the different amendments are finalized in an orderly and methodical fashion.

“This is important because the bureau states it is willing
to delay finalizing the RESPA/TILA rules until all those other
mortgage-related provisions are in place,” Milano said. “It also
means that CFPB will use its exemption authority to delay all
those other ancillary rules until it is able to incorporate them into
one all-inclusive package for final implementation.”
An accurate projection for implementation is therefore im-
practical at this stage. The bureau must finalize a series of separate
rulemakings and then integrate those new provisions into the
RESPA/TILA structure. “It looks like it will be well into 2014
before RESPA/TILA and all of these additional items can be fully
implemented,” Milano said.

How to Proceed

The provisions are highly complex and technical, so much work is still needed to reach a final product. ABA considers the RESPA/ TILA proposal to be a priority, and will be working closely with bank members, industry partners, and the bureau to ensure that the final rule is workable and responsive to bankers’ needs.

In the meantime, banks of all sizes should carefully assess these proposals and strategize how to organize these reforms once a final rule date comes into focus. Compliance staff cannot just sit and wait. The changes imposed by this rulemaking will affect most mortgage-related product lines, and will require massive transformation of existing systems. Upper management must be made aware of the coming costs, outside system providers must be consulted, and bank staff must be prepared for the task of full regulatory reform. ■

ABOUT THE AUTHORS:

ROD ALBA joined the American Bankers Association (ABA) in July 2008 as vice president, mortgage finance and senior regulatory counsel in ABA’s Mortgage Markets, Financial Management, and Public Policy Department. In this role, Alba is responsible for oversight on all residential real estate lending laws, regulations, and other legal developments.

Prior to ABA, Alba was at the Mortgage Bankers Association (MBA), serving as legislative counsel and, before that, senior director of government affairs. Before joining MBA, Rod was an attorney with the Department of Housing and Urban Development in the Office of General Counsel, GSE/RESPA Division. From 2004 to 2007, he served as vice president for federal and regulatory affairs with ACC Capital Holdings in Washington, D.C. In addition, Alba served as special projects counsel to National Council of La Raza, the largest Latino civil rights organization.

Alba’s education includes a Juris Doctor (1993) from Syracuse University College of Law and a B.A. in Economics (1990) from the University of Maryland. You can reach him at ralba@aba.com.

HOLLIS BECKNER is an independent financial services consultant offering writing and research services for mortgage industry communication and analysis and housing policy advocacy. She has over five years of experience in the financial services realm and nearly three years of experience in housing policy. Beckner formerly worked for the Mortgage Bankers Association in public policy and industry relations. She received her Bachelor’s Degree from George Mason University in government and international politics and is currently working on her Master’s Degree in global financial policy. You can reach her at hollis.beckner@gmail.com.