Congress created the Consumer Financial Protection Bureau in 2010 in the Dodd Frank Act. The office opened July 22, 2011.
HOAs and this New Agency
This new agency has three ongoing initiatives that can affect HOAs:
- The agency may require associations to forecast assessment increases and the likelihood of future special assessments
- The agency is studying the use of transfer fees by HOAs
- The agency is taking website complaints from owners on their HOA, on mortgage fraud, abusive lending practices and housing discrimination
Lending to homeowners and closing regulation
This new agency will be defining a ‘qualified mortgage’ and considering the regulation of transfer fees, association assessments, real estate closing or settlement fees, foreclosure prevention and mortgage servicing standards.
Congress transferred rulemaking and enforcement authority under the Real Estate Settlement Procedures Act from the Departmen =t of Housing and Urban Development to this agency. The bureau is in the process of updating real estate closing disclosures and real estate closing forms.
This agency is setting the standards that govern almost every aspect of the mortgage lending and closing process.
Goal: Protecting Consumers
This new federal agency is to serve to protect consumers from harmful financial products. This agency is responsible for enforcing most federal financial consumer protection laws.