Auditing RESPA

Presented by:
Patricia Cashman

                      Remember the old adage "Be careful what you wish for. You just might get it"? The recent RESPA revamp is a perfect example of the results of "wishing" for specifics from HUD, such as acceptable tolerances between the GFE and the settlement statement.

While waiting for the CFPB to wave its magic wand to merge RESPA with Truth-In-Lending, we are left with attempting to protect our banks by auditing for compliance with a law that is more convoluted than the rants of a celebrity entering a "Not Guilty" plea. For example:

• Fees within "Our Origination Charge" may NOT be further itemized, unless your state law requires such.
• Fees within "Title Services and Lenders' Title Insurance" may NOT be further itemized, unless your state law requires such.
• A fee that is "customarily" charged must be disclosed on the GFE but, if not used (such as an owners' title policy), cannot be included on the settlement statement and comparison chart.

This session includes both initial and subsequent disclosures.

This session will assist you in:

• Testing both initial and annual escrow statements
• Locating the "interpretations" within the FAQs, RESPA Round-Up, regulation, and other sources
• Identifying common violations
• Understanding and conveying tolerances and penalties for non-compliance penalties
• Developing or adapting workpapers that adequately document the audit work performed and support for the audit reports.

Who should attend? This session is designed for:

• New compliance auditors who want to fully understand the "why" and "how" of a RESPA audit;
• Experienced compliance auditors who wants to revise or refresh their work program;
• Loan department managers who want to know what the auditors and examiners will be testing and how to properly document for compliance issues;
• Compliance officers can use this as a training tool for personnel responsible for preparation of RESPA disclosures including initial and subsequent disclosures.

About the Speaker: Patricia is a partner in Cashman Compliance Solutions, LLC. She is responsible for consumer compliance reviews, Bank Secrecy Act (BSA) and Anti-Money Laundering reviews, and compliance and BSA training.

Patricia began her banking career in 1969. She has been the senior operations officer for three Dallas-Ft. Worth area community banks, an assistant examiner for the Texas Department of Banking and managed the compliance/internal audit division of TIB - The Independent BankersBank, one of the largest bankers' banks in the country.

Additionally, Patricia has spoken as a webcast/teleconference presenter for the American Bankers Association (ABA), BankersOnline (BOL) and the Center for Financial Training (CFT), taught a variety of compliance subjects for the Texas Bankers Association (TBA) and ABA at their respective Compliance Schools. She also serves as a BOL GURU and been a speaker/trainer for numerous banks and compliance organizations.

You have the right under this license agreement for this CD-ROM to use this presentation on a single-workstation. Use on a network is in violation of the copyright agreements. CD may be used by multiple users at a given institution but may not be placed on a network or in any other multi-user environment.

This program was recorded in its entirety in November 2011. The CD-ROM includes program slides, materials (if available) and follow-up Q & A document.