MBA White Paper Considers Changes to CFPB Operating Procedures – NMP
Regulation and Compliance

MBA White Paper Considers Changes to CFPB Operating Procedures

Sep 13, 2017
The Consumer Financial Protection Bureau has announced that it has taken measures to make it easier for consumers with urgent financial needs to obtain access to mortgage credit more quickly in the middle of the COVID-19 pandemic

The Mortgage Bankers Association (MBA) is considering the future of the Consumer Financial Protection Bureau (CFPB) with a new white paper titled “CFPB 2.0: Advancing Consumer Protection,” which was prepared for the trade group by the law firm of Covington and Burling.
 
The white paper examines the CFPB’s first five years of pursuing enforcement actions, including actions that the MBA stated had “clearly departed from prior published interpretations—without providing sufficient supervisory guidance to the industry in advance.”
 
The white paper recommends that the CFPB follow the example set by other financial services regulators in providing “authoritative explanatory and clarifying guidance to the industry” while recommending potential changes to help strengthen its original consumer protection mission.
 
“The CFPB has done well where it’s developed rules that focus on the worst excesses of the pre-crisis market,” said David H. Stevens, President and CEO of MBA. “However, the Bureau has too-often opted for a ‘regulation by enforcement’ approach that uses enforcement actions, rather than written guidance, to communicate to the industry about practices it finds problematic. The CFPB can better protect consumers by publishing clear, consistent regulations and bright-line guidance like other regulators.”
 
Separately, the CFPB announced that its “recent supervisory actions” resulted in $14 million in relief to more than 104,000 harmed consumers during the first six months of this year. The agency complained that “one or more companies” overcharged and incorrectly charged consumers during the mortgage application and closing processes, while “one or more mortgage servicers” made errors in helping both borrowers paying their mortgages on time and at-risk borrowers.
 
About the author
Phil Hall
Link copied
Published
Sep 13, 2017
Get the NMP Daily
Community
How To Win Real Estate Investors, And Keep Them Coming Back

NMP Ignite speakers share strategies for building lasting investor relationships, overcoming financing challenges, and generating repeat business

Real estate investors can be some of the most valuable clients an originator will ever work with. They buy repeatedly, refinance properties, build portfolios, and refer other investors. But earning their loyalty requires a different approach from traditional residential lend...

Continue reading
Analysis and Data
Just 22% Of Homebuyers Are First-Timers As Cash Purchases Rise

NAR finds nearly one-third of repeat buyers pay cash, narrowing the pool of financed purchase transactions for lenders

First-time homebuyers remain largely on the sidelines of the housing market, accounting for just 22% of purchases as older, equity-rich repeat buyers continue to dominate, according to new data from the National Association of Realtors (NAR).The first-time buyer share edged ...

Continue reading
Renew your NMLS License — for free.

Enjoy access to a free NMLS renewal class when you attend an in-person event.

Find an event
More from
Regulation and Compliance
West Capital LO Challenges Contractor Status, Required Fees

A former originator alleges unpaid overtime, recurring tech charges, and company restrictions that he says undermine his independent-contractor status

Regulation and Compliance
Nov 06, 2026
CFPB Closes 40% Of Investigations, Keeps Mortgage Enforcement In Focus

The federal watchdog closed thousands of supervisory and investigative matters as it narrowed oversight

Regulation and Compliance
Nov 05, 2026
Midterms Loom With Mortgage Policy Changes Already In Motion

As voters head to the polls Tuesday, Washington is weighing changes to refinancing costs, loan pricing, and lending regulations

Regulation and Compliance
Nov 02, 2026
UAD 3.6 Deadline Is Monday. Are Brokers Ready?

Wholesale lenders have adopted different rules for appraisal transfers, loan product changes, and reporting formats, adding complications for brokers and appraisers ahead of the Nov. 2 mandate

Regulation and Compliance
Oct 27, 2026
Friday Harbor Expands AI Appraisal Reviews As UAD 3.6 Deadline Nears

The new capability adds more than 350 automated checks as lenders prepare for the November 2 mandate

Tech
Oct 27, 2026
The Hidden Cost Of Appraisal Uncertainty

As home equity lending grows, lenders need a better way to resolve conflicting property evidence before it creates costly setbacks

Regulation and Compliance
Oct 25, 2026