MORTGAGE COMPLIANCE

On August 31, 2010, the OTS updated Section 1300 of the OTS Handbook, which outlines FCRA compliance requirements reviewed in examinations. The OTS, the Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Federal Trade Commission implemented the FACT Act changes through final rules that were effective July 1, 2009.

Section 623 of the Fair Credit Reporting Act (FCRA) was amended by the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) to improve the way that institutions furnish information to consumer reporting agencies (CRAs) and handle direct disputes from consumers.

Section 1300 of the OTS's Examination Handbook contains procedures used by OTS examiners to assess compliance with the FCRA. The module on financial institutions as being "furnishers of information" (Module 4) has been revised to include the requirements of the new rules.

Furnishing information to CRAs is voluntary. However, under the new rules, institutions that do so must have policies and procedures for furnishing information with accuracy and integrity.

The rules also lay out the duties of institutions that receive disputes directly from consumers. The attached examination procedures address both of these areas.

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