MBA Calls on CFPB to Delay Effective Dates of Registry of Nonbank Covered Persons

In light of President Trump’s “Regulatory Freeze Pending Review” executive order issued last week, the Mortgage Bankers Association asked the CFPB to postpone for 60 days the effective compliance dates for entities subject to its Nonbank Registration Regulation issued on June 3, 2024.

MBA believes that the CFPB should also suspend any collection requirements for large participants that have not yet filed orders or have relevant orders issued during the freeze.

The letter (also available here) from Pete Mills, Senior Vice President of Residential Policy and Strategic Industry Engagement with MBA, read:

The Honorable Rohit Chopra
Consumer Financial Protection Bureau
1700 G Street NW
Washington, D.C. 20552

RE: Regulatory Freeze Pending Review – Delay Effective Dates of the Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders

Dear Director Chopra:

In light of President Trump’s executive order titled Regulatory Freeze Pending Review, the Mortgage Bankers Association urges the Consumer Financial Protection Bureau (CFPB or Bureau) to take immediate action to postpone for 60 days the effective compliance dates for entities subject to the CFPB’s Nonbank Registration Regulation (the Rule) issued on June 3, 2024. While the deadline for large nonbank entities recently passed, the registration process is ongoing, with smaller nonbanks under CFPB supervision required to register by April 14, 2025, and all other covered nonbanks to follow by July 14, 2025.

The Bureau should also suspend any collection requirements for large participants that have not yet filed orders or have relevant orders issued during the freeze. Any data received from large participants should be held without further action, and the Bureau should not take any additional steps on the publication of orders or creation of the registry.

The executive order released on January 20, 2025, orders all executive agencies to “consider postponing for 60 days from the date of this the effective date for any rules that have been published in the Federal Register, or any rules that have been issued in any manner but have not taken effect, for the purpose of reviewing any questions of fact, law, and policy that the rules may raise.” The applicable rule in this case is the Bureau’s rule requiring covered nonbank financial institutions to register with and report to the Bureau when they become subject to certain consumer financial protection agency or court orders.

The Bureau has a duty to limit regulatory burden and consider costs and benefits. MBA and state regulators strongly believe the nonbank registry is a costly and duplicative reporting framework. We continue to be extremely concerned about the short implementation timelines, insufficient showing of need for such a registry, and regulatory burden on registrants. Accordingly, we request that the Bureau suspend the implementation submission periods and take no further action for at least 60 days. Such a pause will comply with the executive order’s core principle of allowing for Administration review of open actions or uncompleted regulatory enactments.

Thank you in advance for your consideration of these comments – we always welcome the opportunity to work with the Bureau and discuss this issue further. Should you have questions or wish to discuss further, please contact me at (202) 557-2878 and pmills@mba.org or my colleague Justin Wiseman at (202) 557-2854 or jwiseman@mba.org.

Sincerely,
Pete Mills
Senior Vice President
Residential Policy and Strategic Industry Engagement
Mortgage Bankers Association