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UDAAP and YOU: Are You in Compliance?

Joy Gilpin
Apr 04, 2014

The Dodd-Frank Act not only mandates “fair, equitable and non-discriminatory access to credit” for consumers, but also makes it illegal for mortgage brokers/lenders to engage in any unfair, deceptive or abusive acts or practices as it relates to the consumer. Rulemaking granted to the Consumer Financial Protection Bureau (CFPB) under the Dodd-Frank Act, in conjunction with revisions to the Truth-in-Lending aCT (TILA), ensures that lenders and brokers are prohibited from engaging in what is considered to be abusive or unfair lending practices. This has resulted in multiple federal statutes compelling mortgage lenders and brokers to establish and adopt an Unfair, Deceptive, or Abusive Acts and Practices (UDAAP) policy in order to comply with regulatory requirements and demonstrate a commitment to the CFPB’s expectation of consumer transparency. Looking for a resource to outline your company’s approach to UDAAP? Look no further. The UDAAP Policy Manual provides an overview of the UDAAP requirements and the reasons mortgage brokers, lenders, and originators need a policy on this trending topic. Additionally, it outlines a comprehensive policy that meets the standards and expectations called for by the CFPB through Dodd-Frank. Finally, it provides support for compliance of existing federal regulations like TILA (which was amended by Dodd-Frank to address Mortgage Reform and Anti-Predatory Lending requirements within TILA). The UDAAP Policy Manual is a complete 34-page plan, ready for personalization with your company or organization’s name. There are seven sections in the MS Word document: 1. Introduction 2. Accountability and Monitoring 3. Staff and Training 4. UDAPP Policy Process and Implementation 5. Mortgage Lenders/Brokers Needed for UDAPP Guidance 6. Best Practices for Lenders/Brokers 7. Relation to Other Laws Let’s take a further look at why you need this policy manual implemented in your organization. The UDAAP Policy Manual: ►Clearly defines Unfair Acts/Practices ►Provides examples of unfair acts/practices as well ►Clearly defines Deceptive Acts/Practices ►Provides examples of deceptive acts/practices as well ►Outlines consequences of non-compliance with UDAAP policies ►Violations ►Educates your teams on what UDAAP is, UDAAP oversight, and how UDAAP is addressed in the Bureau’s Examination process ►Gains guidance and insight on the implementation of a proper UDAAP policy ►Identifies UDAAP risk areas like: ►Marketing materials ►Consumer interactions ►Advertising requirements ►Etc. ►Establishes a UDAAP policy that can be adjusted or tailored to the needs of your organization ►And it is easily scalable based on the size of the organization! The Unfair, Deceptive, or Abusive Acts or Practices Policy Manual is a pre-written AllRegs Policy Manual. It is a complete plan, ready for personalization with your company or organization’s name. Manuals with the Make it MINE Maintenance Plan are updated for any changes within your company. The AllRegs Professional Services Group does the work for you to keep your manual looking top-notch. For a personal consultation on your consumer complaint and other policy needs, call your dedicated account executive at (800) 848-4904. Or, get more information about AllRegs and the full suite of products and services by visiting today. Joy K. Gilpin is professional services manager with AllRegs. She may be reached by phone at (800) 848-4904.
Apr 04, 2014