In a conference call today, Professor Elizabeth Warren, White House special advisor, and Consumer Financial Protection Bureau staff announced a request for comments regarding the bureau’s non-bank supervision program.
While mortgage companies of all sizes are subject to the bureau’s supervision and examination, the CFPB today noted six markets for which non-bank entities offering consumer finance products including debt collection, consumer reporting and credit, money transmission, prepaid cards and debt relief. The comments will assist the CFPB in determining the specifications under which a non-bank entity can be considered a “larger participant” in those consumer financial markets, and thus becoming subject to the supervision program.
Banks have historically fallen under government supervision, but many other types of companies have not, Warren told members of the press.
“Today there are throusands of non-banks making loans,” she said. “Consumers deserve the peace of mind that financial companies—both banks and non-banks—are following the rules,”
The work will be a crucial part of the new agency’s responsibilities, Warren added.
The larger participant rule must be issued within one year of the bureau’s launch date, which falls on July 21 of this year.
View the request for comments.
Written by Elizabeth Ecker