MBA Commends CFPB for Rescinding Nonbank Registration Rules

MBA President and CEO Bob Broeksmit, CMB, issued the following statement in response to the Consumer Financial Protection Bureau (CFPB) rescinding its July 2024 regulation that would have established a public registry of nonbank entities subject to certain agency and court orders and withdrawing its 2023 proposal to create a registry of nonbank contract terms and conditions:

“MBA strongly supports the CFPB’s decision to rescind the unnecessary and duplicative consent order registry proposal and is pleased that the CFPB was receptive to persistent feedback from our members that this registry would have created compliance burdens without improving consumer protection or market transparency. Virtually all the information in the CFPB registry is already available in the NMLS Consumer Access database managed by state regulators.

“We are also pleased to see the CFPB withdraw its unnecessary contracts terms registry, as mortgage contracts are generally standard forms or governed by federal law and the registry would have provided little public benefit.

“These moves allow lenders and servicers to stay focused on responsibly delivering affordable mortgage credit to consumers. We commend the Trump administration for engaging with us on this issue and look forward to continued collaboration on policies that reduce unnecessary regulatory burdens and strengthen accountability while protecting consumers and fostering a more competitive and efficient housing finance system.”