The CFPB Complies With Section 1100G of the Dodd-Frank Act, but Opportunities Exist for the CFPB to Enhance Its Process

Appendix B: Final Sample of Rules Reviewed

1. Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth In Lending Act (Regulation Z). The CFPB is proposing to amend Regulation X (Real Estate Settlement Procedures Act) and Regulation Z (Truth in Lending) to establish new disclosure requirements and forms in Regulation Z for most closed-end consumer credit transactions secured by real property. In addition to combining the existing disclosure requirements and implementing new requirements in the Dodd-Frank Act, the proposed rule provides extensive guidance regarding compliance with those requirements.
2. Regulation E—Electronic Fund Transfers. The proposal addresses three narrow issues. First, the proposal would provide additional flexibility regarding the disclosure of foreign taxes, as well as fees imposed by a designated recipient's institution for receiving a remittance transfer in an account. Second, the proposal would limit a remittance transfer provider's obligation to disclose foreign taxes to those imposed by a country's central government. Third, the proposal would revise the error resolution provisions that apply when a remittance transfer is not delivered to a designated recipient because the sender provided incorrect or insufficient information and, in particular, when a sender provides an incorrect account number and that incorrect account number results in the funds being deposited in the wrong account. The CFPB is also proposing to temporarily delay and extend the effective date of the rule.
3. Appraisals for Higher-Risk Mortgage Loans (Regulation Z). For mortgages with an annual percentage rate that exceeds the average prime offer rate by a specified percentage, the proposed and final rule would require creditors to obtain an appraisal or appraisals meeting certain specified standards, provide applicants with a notification regarding the use of the appraisals, and give applicants a copy of the written appraisals used.
4. Loan Originator Compensation Requirements Under the Truth In Lending Act (Regulation Z). The rule implements requirements and restrictions imposed by the Dodd-Frank Act concerning loan originator compensation; qualifications of, and registration or licensing of, loan originators; compliance procedures for depository institutions; mandatory arbitration; and the financing of single premium credit insurance. The final rule revises or provides additional commentary on Regulation Z's restrictions on loan originator compensation, including application of these restrictions to prohibitions on dual compensation and compensation based on a term of a transaction or a proxy for a term of a transaction, and to recordkeeping requirements. The final rule also establishes tests for when loan originators can be compensated through certain profits-based compensation arrangements.
5. Mortgage Servicing Rules Under the Real Estate Settlement Procedures Act (Regulation X). This rule implements Dodd-Frank Act sections addressing servicers' obligations to correct errors asserted by mortgage loan borrowers, to provide certain information requested by such borrowers, and to provide protections to such borrowers in connection with force-placed insurance. Additionally, this final rule addresses servicers' obligations to establish reasonable policies and procedures to achieve certain delineated objectives, to provide information about mortgage loss mitigation options to delinquent borrowers, to establish policies and procedures for providing delinquent borrowers with continuity of contact with servicer personnel capable of performing certain functions, and to evaluate borrowers' applications for available loss mitigation options. Further, this final rule modifies and streamlines certain existing servicing-related provisions of Regulation X.
6. Mortgage Servicing Rules Under the Truth In Lending Act (Regulation Z). This final rule implements Dodd-Frank Act sections addressing initial rate adjustment notices for adjustable-rate mortgages, periodic statements for residential mortgage loans, prompt crediting of mortgage payments, and responses to requests for payoff amounts. This final rule also amends current rules governing the scope, timing, content, and format of disclosures to consumers regarding the interest rate adjustments of their variable-rate transactions.

Table B-1: Details on Rules Sampled

No.	NPRM Federal Register citation	Certification or panela	Cost-of-credit analysis
1	Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth In Lending Act (Regulation Z)	Panel	Yes
2	Regulation E-Electronic Fund Transfers	Certification	N/A
3	Appraisals for Higher-Risk Mortgage Loans (Regulation Z)	Certification	N/A
4	Loan Originator Compensation Requirements Under the Truth In Lending Act (Regulation Z)	Panel	Yes
5	Mortgage Servicing Rules Under the Real Estate Settlement Procedures Act (Regulation X)	Panel	Yes
6	Mortgage Servicing Rules Under the Truth In Lending Act (Regulation Z)	Panel	Yes

• Source: OIG compilation based on applicable Federal Register notices

• a Certification means that the CFPB Director certified that the proposed rule would not have a SISNOSE; panel means that the CFPB convened a small business review panel.