The Multi-State Mortgage Committee (MMC) has released the 2011 annual report to state regulators highlighting accomplishments of 2011 and outlook for 2012. The MMC was created in 2008 by state financial regulators through the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR). The MMC is charged with coordinating the examination and supervision of those mortgage lenders and brokers operating in more than one state. The MMC is comprised of 10 members who are elected by and report to the boards of CSBS and AARMR.
In 2011, the MMC successfully completed many initiatives, including:
►Implementation of a Limited Scope Electronic (LSE) examination process to increase examination efficiencies;
►Participated in the nationwide mortgage servicer settlement;
►Submitted a white paper to the Consumer Financial Protection Bureau (CFPB) on the differences between the Real Estate Settlement Procedures Act (RESPA) and the Truth-in-Lending Act (TILA) to assist the CFPB address discrepancies between the two laws;
►Developed State Non-Depository Examiner Guidelines for the Regulation Z Loan Originator (LO) Compensation Rule to provide a process for both state regulators and the industry to conduct compliance reviews under the new rule; and
►Published the Mortgage Examination Manual.
Throughout 2012 and into 2013, the MMC will continue to coordinate examinations, refine regulatory protocols and processes, and create more streamlined supervision to fulfill the requirements of the state regulatory system, while reducing undue burden on the mortgage industry.
“The MMC continues to work toward a seamless and less burdensome examination process through the use of technology and enhanced communication processes among the state regulators,” said Charlie Fields, chairman of the MMC and director of Non-Depository Entities of the North Carolina Office of the Commissioner of Banks. “The MMC is committed to raising the bar for examinations of multi-state mortgage companies and will continue to strive to create tools and issue guidelines to increase the technical proficiency of examiners.”
