In addition to having the Consumer Financial Protection Bureau monitoring lenders’ compliance with its new TILA-RESPA Integrated Disclosures rule, the Office of the Comptroller of the Currency told lenders Friday that it will soon be starting its initial examinations of compliance with the TRID rules.
In a memo addressed to “chief executive officers and compliance officers of national banks and federal savings associations, federal branches and agencies, department and division heads, all examining personnel, and other interested parties,” the OCC provides guidance on what it will be looking for when it begins examining banks for TRID compliance.
During its initial TRID compliance exams, the OCC said that its examiners will be evaluating a bank’s compliance management system and overall efforts to come into compliance, “recognizing the scope and scale of changes necessary for each bank to achieve effective compliance.”
The CFPB has already stated that it will implement a “hold harmless” grace period for lenders dealing with the requirements of TRID, but noted that the grace period is not a formal or defined period.
The CFPB has stated repeatedly that lenders must be making “good faith efforts” to comply with the TRID rules during the so-called grace period.
The OCC also stated that it expects banks to make good faith efforts to comply with TRID.
“Examiners expect banks to make good faith efforts to comply with the rule’s requirements in a timely manner,” the OCC memo states. “Specifically, examiners are considering the bank’s implementation plan, including actions taken to update policies, procedures, and processes, as well as training of appropriate staff and handling of early technical problems or other implementation challenges.”
The OCC states that its TRID supervisory approach will be similar to the approach it took with its examinations for compliance with the mortgage rules implementing provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that went into effect in January 2014.
According to the OCC, the guidance applies to national banks and federal savings associations with $10 billion or less in total assets.
As part of the memo, the OCC provides four PDF files, one manual narrative and one examination procedure guide for both the TILA rules and the RESPA rules.
Click here to read the OCC’s TILA/Regulation Z Examination Manual Narrative.
Click here to read the OCC’s TILA/Regulation Z Examination Procedures.
Click here to read the OCC’s RESPA/Regulation X Examination Manual Narrative.
Click here to read the OCC’s RESPA/Regulation X Examination Procedures.
The OCC also states that it is s in the process of incorporating these revised interagency procedures into the “Truth in Lending Act” and “Real Estate Settlement Procedures Act” booklets of the Comptroller's Handbook.
Once the revisions are complete, examiners should use the revised booklets instead of the interagency procedures, the OCC said.
