Examiners from the Consumer Financial Production Bureau will begin entering nonbank residential lending shops in February and March, according to the bureau's newly appointed "permanent" director, Richard Cordray.
Cordray told reporters Thursday morning that the bureau has been preparing to conduct these nonbank exams while his confirmation was pending in the Senate. Now that President Obama has installed him as the first CFPB director, "We are ready to go," Cordray said.
A few days ago the CFPB published examination procedures for reviewing nonbank mortgage servicers and originators.
The bureau will notify a company before sending in examiners. It will then determine whether the lender or servicer is complying with federal consumer protection laws.
During his meeting with the Washington press corps, the new director noted that CFPB will be working with other regulators in developing new servicing standards. Many of the same regulators are in settlement talks with major bank servicers over foreclosure and servicing abuses.
That settlement likely will affect servicing standards, he said, adding, “It's kind of a complicated space right now.”
The former Ohio Attorney General said, "There is a recognition that servicing practices need to be addressed," and the standards should apply "evenhandedly to all players" -- banks and nonbanks alike.
