State regulators and the new federal regulator of mortgage lenders have agreed to maintain consistency in the way they conduct examinations.
A memorandum of understanding was signed Tuesday by the Conference of State Bank Supervisors and the Consumer Financial Protection Bureau.
A news release from the CFPB, which currently operates from the Treasury Department, said that the partnership seeks to “establish a foundation of state and federal coordination and cooperation for supervision of providers of consumer financial products and services.”
Federal and state regulators will work to maintain consistent examination procedures, according to the news release. Effective enforcement of state and federal consumer laws is also an objective, as is an attempt to minimize regulatory burden while efficiently deploying supervisory resources.
The federal regulator, which was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act, will consult with the states about their standards, procedures and practices on compliance examinations.
Entities regulated by the CFPB include non-depository mortgage lenders and mortgage servicers.
“For the first time, a federal agency with the sole job of looking out for consumers as they interact with the financial system will work with state regulators to review businesses’ practices and ensure that firms that provide consumer financial products, such as mortgages, are following the law,” the press release stated.
