CFPB Issues Final Nonbank Student Loan Servicers Rule
On Tuesday, December 3, 2013, the Consumer Financial Protection Bureau (the "CFPB") issued a final rule pursuant to the CFPB’s authority under Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The final rule allows the CFPB to supervise certain nonbank student loan servicers for compliance with Federal consumer financial law and for other purposes.
Under Title X and existing CFPB regulations, the CFPB has the authority to supervise nonbank covered persons of all sizes in the residential mortgage, private education lending, and payday lending markets. The CFPB also has the authority to supervise nonbank “larger participants” of markets for other consumer financial products or services, as the CFPB defines by rule. This final rule amends existing CFPB regulations defining larger participants of certain consumer financial product and service markets by identifying a market for student loan servicing and defining “larger participants” of this market that are subject to the CFPB’s supervisory authority.
Read the CFPB press release