The Conference of State Bank Supervisors (CSBS) said they are seeking public input on proposed regulatory prudential standards for nonbank mortgage servicers, as the state-regulated industry covers an increasing share of this market.
The proposal intends to: Provide better protection for borrowers, investors and other stakeholders in the occurrence of a stress event that could result in harm; enhance effective regulatory oversight and market discipline over these entities; and improve transparency, accountability, risk management and corporate governance standards.
The public comment period runs today through December 31.
CSBS President and CEO John W. Ryan said now that nonbank mortgage servicing accounts for more than half of the agency market, a “common standard for assessing these entities’ safety and soundness and corporate governance” is more critical than ever.
“We look forward to receiving industry and stakeholder input as we craft final standards that enable robust oversight that balances consumer protection, prudential regulation and market viability.”
In a press release, the CSBS lists the following “main components” of the proposal:
- A…
