Warren and State Regulators Sign Memorandum of Understanding

The Consumer Financial Protection Bureau (CFPB) implementation team signed a memorandum of understanding (MOU) with the Conference of State Bank Supervisors (CSBS) to establish a foundation of state and federal coordination and cooperation for supervision of providers of consumer financial products and services.

The memorandum is an important step in implementing a constructive balance between federal and state regulation of firms and a starting point for additional state agreements as the states and the CFPB work to fulfill their mandates.  The endeavor will promote consistent examination procedures and effective enforcement of state and federal consumer laws and to minimize regulatory burden and efficiently deploy supervisory resources said the CSBS.

“The new consumer financial agency and the state banking regulators are forging an alliance to protect American families,” said Elizabeth Warren, special advisor to the Secretary of the Treasury on the CFPB. “This agreement allows us to bring thousands of financial service providers out of the shadows and to begin the process of ensuring that all lenders comply with the same basic rules.”


“Today is an important day for financial supervision,” said Thomas Gronstal, Chairman of CSBS.  “The formalized coordination between the states and the federal government established by the MOU will do much to create a comprehensive and seamless system of financial supervision and is a step toward a more cooperative system of supervision, which will benefit consumers and financial services providers alike.”

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  • Unfortunately I do not share the enthusiasm over this Memorandum Of Understanding signed by the CFPB and the Conference of State Supervisors.

    Once again we will see how the “Financial Regulatory Reform Bill” through the CFPB will exert its power and further take over the banking and lending industry.

    They talk about how they are out to protect the consumer! When we see small community banks fail more than they are and the small business man fail because he or she can’t get loans we will then see unemployment rise. I don’t think this will protect the consumer.

    Protecting the consumer is a smoke screen for what the real intent here is. That’s all for today folks!


    John A. Smaldone

  • I typically fear over-regulation. That being said, I believe Elizabeth Warren has a mission to make financial products more transparent to consumers. She has been an advocate of a one page GFE/TIL disclosure on the forward mortgages.

    She is a smart lady that won’t back down to Wall Street.

    • Sam,

      How does that help the reverse mortgage industry, if any? No one questions her intelligence, backbone, or skill. But I do have concerns about bias.

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