Consumer Financial Protection Bureau (CFPB)
The Consumer Financial Protection Bureau (CFPB) is a government agency that was formed as a result of the Dodd-Frank Wall Street Financial Reform Act of 2010. Its mission is to help consumer finance markets work by making rules more effective, by consistently and fairly enforcing consumer financial protection laws, and by empowering consumers to take more control over their economic lives. One of its directives was to develop the Know Before You Owe Mortgage Rule (also called the TILA-RESPA Integrated Mortgage Disclosure Rule), which combines the federal Truth in Lending Act and Real Estate Settlement Procedures Act disclosures that are used in home purchases using federally backed mortgage loans.
The new regulations change the processes most buyers and sellers have grown accustomed to when buying, selling, and refinancing real estate for more than 30 years. They also increased regulations geared toward lenders and settlement service providers, including title companies, who gather information from buyers and sellers, conduct title searches, prepare documents, conduct real estate closings and issue title insurance policies. Since the passage of Dodd-Frank, Southern Title has worked diligently to understand the law, develop policies and procedures to ensure compliance with the new regulations, and educate our customers about how the changes will impact them.
Southern Title successfully completed a comprehensive third party assessment of its company practices regarding the protection of customer's personal information and has been awarded an ALTA Best Practices Pillar 3 Certificate of Completion.
The extensive audit, conducted by Security Compliance Associates, demonstrates the company’s commitment to compliance and data security, its adherence to ALTA Best Practices Pillar 3 and applicable Gramm-Leach-Bliley Act (GLBA) and Federal Trade Commission (FTC) requirements. In addition, the certification illustrates the company’s preparation for lender or regulator audits required by the Dodd-Frank Wall Street Reform Act of 2010.
The American Land Title Association (ALTA) created the “7 Pillars of the Best Practices” to help the title industry comply with the new regulations that comprise the Know Before You Owe Mortgage Rule. The Best Practices are industry standards that highlight the policies and procedures that will protect lenders and consumers, while ensuring a positive and compliant real estate settlement experience. Southern Title has developed a comprehensive manual outlining its standard operations that strictly adhere to the Best Practices in order to meet CFPB’s guidelines and lender's requirements. To view our Best Practices promotional brochure, click here.