Posted by Linda_in_IN on 12/4/13 6:52am Msg #494927
Being in compliance with new CFPB recommendations
Found this short blog posting through a link from the Title Insurance and Settlement Group in LinkedIn. Yes, the blog is from an attorney's office in North Carolina specializing in short sales, but it gives an idea of the compliance issues coming out of the new CFPB recommendations that are being faced by other entities. Found the following paragraph especially enlightening:
"We were sent a security audit from one our clients which requested over 1,000 pages of policies, forms and procedures, it contained over 500 detailed questions which investigated every nook and cranny we have in our operation. Basically the premise was clear: either comply with everything in this questionnaire or you will not be a vendor of ours. "
http://www.jaimekosofsky.com/?p=686
For me, this put the requests for more documentation from us as notaries in a little different light. Now, that's not to say I don't agree with some of the methods that entities may be using to ensure that all involved are in compliance, but the big picture end result of the CFPB making more information available to consumers may be a good thing.
Any thoughts?
|
Reply by C. Rivera Chicago Notary Services on 12/4/13 7:04am Msg #494930
LOVE the beginning...I GOT DODD FRANKED! n/m
|
Reply by 101livescan on 12/4/13 7:47am Msg #494935
Wow! Definitely changes the landscape of our industry forever more.
|
Reply by CarolF/NC on 12/4/13 8:00am Msg #494937
I think people working in NC saw it coming
My complaint is that the SPW code of conduct and BGC point system have little to do with the compliance standards and are some arbitrary standards drawn up by that group.
|
Reply by Amigoaz on 12/4/13 9:09am Msg #494944
Being in compliance with CFPB "recommendations" does not mean we need to distribute our Non-Public Personal Information and release all liability for those who disclose it or abuse it. Reasonable continuing education and certification are good ideas, but not from a sole source. Fees should rise with the increased requirements! Just my .02
|
Reply by C. Rivera Chicago Notary Services on 12/4/13 9:22am Msg #494945
agree with Carol... n/m
|
Reply by NVLSlady/VA on 12/4/13 12:52pm Msg #494971
CFPB Bulletin (#2012-03) that caused a stir
I think excerpts from this bulletin answers much of the WHY.
A. Service Provider Relationships** The CFPB recognizes that the use of service providers is often an appropriate business decision for supervised banks and non-banks. Supervised banks and non-banks may outsource certain functions to service providers due to resource constraints, use service providers to develop and market additional products or services, or rely on expertise from service providers that would not otherwise be available without significant investment.
However, the mere fact that a supervised bank or non-bank enters into a business relationship with a service provider does not absolve the supervised bank or non-bank of responsibility for complying with Federal consumer financial law to avoid consumer harm. A service provider that is unfamiliar with the legal requirements applicable to the products or services being offered, or that does not make efforts to implement those requirements carefully and effectively, or that exhibits weak internal controls, can harm consumers and create potential liabilities for both the service provider and the entity with which it has a business relationship. Depending on the circumstances, legal responsibility may lie with the supervised bank or non-bank as well as with the supervised service provider.
To limit the potential for statutory or regulatory violations and related consumer harm, supervised banks and non-banks should take steps to ensure that their business arrangements with service providers do not present unwarranted risks to consumers. These steps should include, but are not limited to:
 >Conducting thorough due diligence to verify that the service provider understands and is capable of complying with Federal consumer financial law;
 >Requesting and reviewing the service provider’s policies, procedures, internal controls, and training materials to ensure that the service provider conducts appropriate training and oversight of employees or agents that have consumer contact or compliance responsibilities;
 >Including in the contract with the service provider clear expectations about compliance
**Service provider is generally defined in section 1002(26) of the Dodd-Frank Act as “any person that provides a material service to a covered person in connection with the offering or provision by such covered person of a consumer financial product or service.” (12 U.S.C. § 5481(26)). A service provider MAY OR MAY NOT BE AFFILIATED with the person to which it provides services.
Due diligence: With all the compliance steps the bureau is recommending, I am surprised the SCs THEMSELVES have the ability to comply. This calls for a well-oiled "machine" - and half of 'em can't even figure out how to pay promptly!
This could be BAD for the consumer (look here): http://bankcreditnews.com/news/cfpb-warns-banks-non-banks-on-third-party-vendor-compliance/3890/
No way I would want my information funneled to a make-shift entity that may or may not have the resources to implement these controls. No wonder they're coming down HARD on the SA.
TCs are risking their reputations & hurting their bottom line IMO. To them, I say, "Get to know your own state's notaries - commissioned, insured, independently vetted and Impartial to the transaction. You can trust us to work with you to comply with all Federal protection statutes for a Safe and Satisfying Signing."
(Hmm. . . think I'll add my PSA to my site)
|
Reply by MAC/WA on 12/4/13 2:07pm Msg #494989
Totally agree, amizoaz. Also,TCs and Lenders and CFPB
would be hard pressed to find 1000 pages of anything in my office, except blank ones.
|
Reply by MW/VA on 12/4/13 7:31pm Msg #495041
IMO this is a different scenario, because the attorney was
acting as the settlement agent. I am aware of a provision in the new regulations that can call for an "audit" on compliance issues. IMO this still doesn't apply to us.
|
Reply by MAC/WA on 12/4/13 8:18pm Msg #495055
CFPB requires banks/nonbanks to provide oversight of
service providers, including inspecting their policies, procedures and training. We are a service provider.
|
Reply by CarolF/NC on 12/4/13 9:08pm Msg #495059
Which is why we should all have at least one piece of paper
on our consumer protection policies in our office.
|