CFPB does not freeze -Bank registration -Rule after pushback in the industry
“Instead, the agency will continue to concentrate its enforcement and supervisory activities on urgent threats for consumers,” the CFPB said in a statement.
Timeline
The Proposed ruleIntroduced in the end of 2022, Bank entities require enforcement actions and judicial orders of public agencies for inclusion in a non -bank registration system (NBR) -a publicly available online database. The last rule was published in July 2024, with an implementation date of 16 September 2024.
According to the original timeline, smaller non -banks had to register under the supervision of the CFPB by 14 April 2025, whereby all covered non -banks were expected to comply with July 14, 2025.
The most important criticism of mortgage trading groups was aimed at what they characterized as the dismissal of the rule. Independent Hypotheekbanken (IMBS) already report comparable information via the National Multistate Licensing System And Register (NMLS).
The NMLS MU1 forms already require that IMBs announce all national or federal regulatory actions – as well as certain judicial actions – of the past 10 years. IMBs that do not comply with NMLS reporting rules are subject to fines.
Response industry
Mortgage trading groups cheered the freezing of the non -bank register rule.
The Community Home Lenders of America (Chla), a national non-profit organization that represents small and medium-sized community mortgages, said that the recent decision “offers legal exemption for smaller lenders of double register requirements.”
“Chla called for such an action in our letter from February to the CFPB, as part of an agenda of streamlining the regulations so that mortgage providers can concentrate on their most important company – original loans,” the trade group said in a statement.
Another trade group, the Mortgage banking association (MBA), sent a letter to the CFPB in January with a delay in the deadlines of the compliance. At that time, MBA President and CEO Bob Broeksmit attacked the rule and said it was ‘expensive and duplicative’.
Regarding the Current Freezing, MBA’s Senior Vice President of Residential Policy and Strategic Industry Engagement, Pete Mills, Said in A Statement that the CFPB “Could Have Instead Added Its Enforcement Information on Mortgage Fathensive of the Alressaceed Byhapsase Database Database Database Database Database Database Database State Bank Supervisors’ NMLS Consumer Access Portal. ”
‘MBA monitors the following steps of the CFPB and will argue for them to consider publishing an NPR to engage the regulation, “said Mills.
