MBA Supports CSBS Prudential Standards for Nonbank Mortgage Servicers
On Tuesday the Conference of State Bank Supervisors released model state regulatory prudential standards for nonbank mortgage servicers. MBA President and CEO Bob Broeksmit, CMB, immediately expressed support for the standards.
The CSBS Board of Directors approved new regulatory standards to enhance and align states’ existing authority over the fast-growing area of nonbank mortgage servicing, which has grown from 6% to 60% of the government agency mortgage market in the past 10 years. The Board approved model state regulatory prudential standards for nonbank mortgage servicers on July 23.
“The standards provide states with uniform financial condition and corporate governance requirements for nonbank mortgage servicer regulation while preserving local accountability to consumers,” said CSBS President and CEO John W. Ryan.
Broeksmit noted MBA appreciates that CSBS created model capital and liquidity standards for nonbank servicers consistent with MBA’s call for a uniform standard that can be applied across all 50 states. “Just as important, this framework mirrors the federal standards for Fannie Mae, Freddie Mac and Ginnie Mae and is scalable for smaller servicers that operate only in a handful of states and service a small number of loans,” he said.
Broeksmit said uniform standards, aligned with federal requirements that apply to GSE and government loan servicing, will ensure that independent mortgage banks are not subjected to conflicting supervisory standards across the states in which they operate. “This will lead to a more consistent and efficient state regulatory system for lenders and regulators alike,” he said. “MBA looks forward to working with state regulators and legislators to drive adoption of the CSBS standards.”