The CFPB, on Monday, convened its second Small Business Regulatory Enforcement Fairness Act (SBREFA) Panel to solicit information on the impact on small institutions and servicers of mortgage servicing rules under consideration by the Bureau.
The Dodd-Frank Act requires CFPB to convene a SBREFA Panel whenever a rule under consideration may have a “significant economic impact on a substantial number of small entities.” The Panel meets with selected Small Entity Representatives (SERs), to solicit feedback on the potential economic impacts of complying with the rules being considered and to explore less burdensome regulatory alternatives.
At the meeting, CFPB heard from twelve SERs representing community banks, credit unions, small servicers, and one small nonbank mortgage lender, who described in detail the “high touch” mortgage servicing model of community banks and explained how the prescriptive servicing rules under consideration would negatively affect consumers, servicing operations, and the cost of credit. In addition to participating in the convening meeting, SERs have the opportunity to provide written comments which are due in May.
Within 60 days of the convening meeting, the Panel must issue a report on the input received from small entities. The CFPB, in turn, must consider the Panel’s report as it drafts its proposed rule. The Bureau intends to finalize its mortgage servicing rule by January 2013.
View the Outline of Proposals Under Consideration.
View a list of discussion questions from the Panel meeting.