Facing a plethora of proposed rules to simplify the loan origination process and marketplace heading into 2013, the Consumer Financial Protection Bureau (CFPB) launched Project Catalyst in November 2012 to foster consumer-friendly innovation in the marketplace, and to provide efficient, open lines of communication between consumers, originators and the Bureau. Project Catalyst’s mission believes that insights and innovations that stem from looking at problems from new angles holds greater potential in achieving their mission of making the consumer finance market work for consumers.
New mortgage disclosure forms, which outline the expected closing costs and terms of the mortgage for consumers, have been in development for the past 18 months. The Bureau is encouraging banks, credit unions and other financial services companies to propose and conduct trial disclosure programs. Beginning in January 2013, DocuTech will spearhead a leadership initiative response from lenders to the CFPB’s Project Catalyst. We will assist the CFPB and help Project Catalyst adhere to its mission by testing different compliance formats and providing feedback.
Scott K. Stucky, chief operating officer, comments on this unique opportunity for DocuTech:
“The CFPB recognizes that what seems like a good idea in theory often hits unexpected obstacles when put into full production. We are in a unique position to help lenders not only evaluate the disclosures from a content perspective, but to also test the ease of implementation and the impact to operations.”
The two assertions of Project Catalyst are to benefit the consumers and let their ideas, concerns and questions be heard. First, if a consumer believes an item in a financial regulation can be improved and provide better innovation, they are encouraged to describe the improvement to the CFPB, who will listen and use the observation as a tool for policymakers. Second, in this case the one we are involved in, is to allow start-ups, small businesses and innovative company departments working on new, consumer-friendly financial products or services, the opportunity to collaborate or launch a pilot of new ideas that will help better the marketplace.
If you would like to get involved with Project Catalyst, include who you are and describe your innovation, project and change in an email to firstname.lastname@example.org. For more information on Project Catalyst, visit www.cfpb.gov.