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CFPB Audit
What You Can Expect For Reverse Mortgages
A non-bank lender who does reverse mortgages was just audited by the Consumer Financial Protection Bureau. Watch the video to see what we may come to expect in the future.
1 Comment
Initial audits always take more time than subsequent audits. Worse this was part of the initial audits of the Bureau itself.
One would expect slightly different tests and different items tested since the Bureau has a different objective in its audits than HUD. If the pace of the audits takes at least twice as long as it will in subsequent years, the CFPB will not be in a place to reach relevant conclusions about the industry as a whole for some time.
Unless the CFPB quickly gets on with its audit schedule, it will lack sufficient data to make reasonable conclusions about reverse mortgage compliance before its report is due. That is really too bad since the report will reflect more opinion than verified facts.
There is little doubt that the report will rely heavily on the investigations of others and will reflect unverified testimony. The deadline of the report is but another indication about the unreasoned approach former Senator Dodd and his peers took in creating the Dodd-Frank bill. A Bureau cannot start up immediately and within one year have a comprehensive and reasonably verified report unless that report is one of a handful of activities.
To say the least if it were not for Mr. Skip Humphrey heading up the department responsible for the report, concern about the contents of the report would be much higher. As it is, it is and will be quite high.