CFPB Plugs Gap In Student Loan Servicing Regs

Law360, New York (December 3, 2013, 2:40 AM EST) -- The Consumer Financial Protection Bureau on Tuesday extended its supervisory reach to nonbank servicers of both private and federal student loans in an effort to root out servicing problems that mirror those that occurred in mortgage servicing prior to the financial crisis.

The CFPB's rule defining “larger participants” in the student loan servicing market will subject the seven largest nonbank student loan servicers to the same examination process to which their competitors housed within banks are already subject. It comes as the bureau has increased its...
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