The Consumer Financial Protection Bureau (CFPB) and the Conference of State Bank Supervisors (CSBS) on January 4 signed a memorandum of understanding (MOU) to establish cooperation in the supervision of providers of consumer financial products and services. The MOU provides that state regulators and the CFPB will consult each other regarding the standards, procedures, and practices used by state regulators and the CFPB in conducting compliance examinations of providers of consumer financial products and services, including non-depository mortgage lenders, mortgage servicers, private student lenders, and payday lenders. The significance of this step for bankers is that it puts the new Bureau on a path to extend supervisory oversight of consumer compliance to previously under-regulated non-bank competitors.
“The new consumer financial agency and the state banking regulators are forging an alliance to protect American families,” said Elizabeth Warren, special advisor to the Secretary of the Treasury on the CFPB. “This agreement allows us to bring thousands of financial service providers out of the shadows and to begin the process of ensuring that all lenders comply with the same basic rules.”