Are you confused by all the talk about CFPB and compliance? Let us help you with what these acronyms are!
CFPB: The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government responsible for consumer protection in the financial sector. Mandated by Dodd Frank, Congress established the CFPB to protect consumers by carrying out federal consumer financial laws. Other functions of the CFPB include researching consumer behavior, to monitor financial markets for new risks to consumers, and to promote financial education.
SOC: Stands for Service Organization Controls
SSAE 16: Stands for Statement on Standards for Attestation Engagements and replaces the SAS 70 previously used.
SOC1: SOC 1 reports focus solely on controls at a service organization that are likely to be relevant to an audit of a user entity’s financial statements.
SOC2: SOC 2 reports specifically address one or more of the following five key system attributes:
· Security — The system is protected against unauthorized access (both physical and logical).
· Availability — The system is available for operation and use as committed or agreed.
· Processing integrity — System processing is complete, accurate, timely and authorized.
· Confidentiality — Information designated as confidential is protected as committed or agreed.
· Privacy — Personal information is collected, used, retained, disclosed and disposed of in conformity with the commitments in the entity’s privacy notice, and with criteria set forth in Generally Accepted Privacy Principles (GAPP) issued by the AICPA and Canadian Institute of Chartered Accountants.
The Truth in Lending Act (TILA) of 1968 is United States federal law designed to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.
Real Estate Settlement Procedures Act – RESPA‘: This act was designed to protect potential homeowners and enable them to become more intelligent consumers. RESPA requires that lenders provide greater amounts of information to prospective borrowers at certain points in the loan settlement process.
Closing Disclosure/TRID: Come August 1st, the Closing Disclosure will be the new document that replaces the HUD-1 and the final TILA disclosure.
Consummation: Consummation occurs when the consumer becomes contractually obligated to the creditor on the loan.
Contact us to talk to your brokerage on how this is affecting real estate this year.