Steve VanBeek at the NAFCU Compliance Blog yesterday posted a nice list of links to the CFPB web site for each of the CFPB regulations on mortgage loans. He also took a shot at the CFPB's "creativity" in avoiding the Administrative Procedures Act.
The CFPB likes to make up its own rules. Including their recent announcement that their rules are considered "issued" when they are posted on the CFPB's website rather than the normal Administrative Procedure Act timeframe of when the rules are published in the Federal Register.Well, as chance would have it, the CFPB's mortgage rules are slated for publication in the Federal Register for the following dates:
- January 22nd for Escrow Final Rule (link goes to actual Federal Register document)
- January 30th for Qualified Mortgage/Ability-to-Repay Final Rule (link goes to Public Inspection Desk)
- January 30th for High-Cost/HOEPA and Homeownership Counseling Disclosures (link goes to Public Inspection Desk)
The other regulations will be in the Federal Register at an even later date.
Why does this matter? The CFPB gave 12 months (and sometimes less) from the "issue date" to implement the majority of the new requirements. Because the CFPB considers the "issue date" as the date of publication on the CFPB's website - rather than publication in the Federal Register - your credit union will have less time to comply with the final rules.
Summary. If the CFPB would have followed the normal Administrative Procedures Act process, your credit union would have 12 months - from the date of publication in the Federal Register - to comply.
Unfortunately, Dodd-Frank gave the CFPB very strict deadlines for issuing their final regulations and the CFPB chose to alter long-standing rulemaking practices instead of using its exemption authority (like it did for other Dodd-Frank requirements) to ease the impact of these regulations.
Today, Steve was irked about the way the CFPB rushed through the enactment of the international remittances regulation. Instead of a thoughtful process, in which the CFPB listened to criticism of the proposed regulation and enacted changes before it went into effect, the bureau shot first and took names later. Naturally, this resulted in unnecessary time and money wasted by financial institutions, as well as inducing angst in financial institution personnel.
The process this regulation has taken has left everyone's head spinning. The CFPB had opportunities to listen to industry feedback and make changes upfront. Instead, they finalized the rules and only then did they realize they were not workable. Unfortunately, the lack of operational experience and background at the CFPB was on full display. They had a rule and were going to finalize it no matter what the consequences.
Steve's getting so ornery these days, especially about one of my favorite black holes of regulatory ennui, that I might have to start asking him to guest post here.
I wonder when the first lawsuit will allege that "issuing" rules by posting them on a web site is not valid rulemaking? What do you suppose the over/under is on that date?
CFPB Delenda Est!
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