Aug 27 - According to an American Bankers Association survey, at the end of June 60 percent of vendors had not told their banker clients when they will be ready to comply with the Consumer Financial Protection Bureau’s new mortgage rules. The survey was aimed at senior mortgage executives of ABA member banks to learn more about their overall implementation efforts and the progress that their vendors have made in delivering applicable technology.
“This survey confirms what we’ve been telling regulators and Congress all along: banks need more transition time to implement these mortgage rules,” said Robert Davis, executive vice president of mortgage policy at ABA. “Community banks in particular have indicated that updated software, programming and training are big concerns, and training can’t occur until systems are operational.”
Most banks, 79 percent, will use vendors to create software and systems that will allow the bank to continue making mortgage loans in compliance with the rules released earlier this year by the CFPB.
Twenty-four percent of bankers said help will not be available until November 2013 or later. Once banks receive materials from their vendors, they will need additional time to adjust and test the vendor product and train staff. Eighty-two percent of banks expect to take two months or more to fully integrate the vendor’s products once they are made available to the institution.
“There simply is not enough time. Without a transition period, we will see fewer mortgage loans made available, jeopardizing the housing and economic recovery,” said Davis.
For a copy of the letter ABA sent to regulators and the complete survey, click here.