CFPB Unveils Rules For Nonbank Mortgage Lenders

Law360, New York (January 11, 2012, 4:42 PM EST) -- The Consumer Financial Protection Bureau on Wednesday released new procedures for regulating nonbank lenders that provide mortgage loans, some of whose practices contributed to the collapse of the U.S. housing market.

The Mortgage Origination Examination Procedures will target independent lenders, brokers, servicers, and others unaffiliated with banks and depository institutions, the bureau said in a statement.

The rules, required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, are intended to stanch risky lending practices such as granting unsustainable subprime mortgage loans that contributed to...
To view the full article, register now.