The Conference of State Bank Supervisors (‘CSBS’) published a white paper last September on Prudential Standards for Nonbank Mortgage Servicers. Noting the growth of nonbank entities specializing in mortgage servicing, CSBS proposed an increased baseline of standards for state regulators to utilize in their regulatory oversight. The industry pushed back against adopting standards that differ from existing CFPB and Federal Housing Finance Agency requirements.
Chuck Cross, CSBS Senior Vice President, was asked about the status of the prudential standards while participating on a panel for MBA’s Independent Mortgage Bankers Conference. He shared a few points on the evolution of the CSBS white paper, review of the submitted comments and next steps. He noted CSBS received 17 industry comments during the comment period. He also shared that CSBS had conducted one-on-one meetings with “much of the industry” and the MBA.
The Non-Depository Supervisory Committee (‘NDSC’) is the CSBS committee responsible for the review and recommendation to the CSBS Board. Chuck shared the NDSC has reviewed the comments and made specific Accept, Reject or Compromise determinations around the requests made. The final draft of the standards incorporated some of the comments.
