CSBS Publishes New Series: “Reengineering Nonbank Supervision”
In a press release noting, among other things, that “[n]onbank mortgage companies are responsible for two-thirds of annual residential mortgage originations, more than doubling their market share since 2013,” The Conference of State Bank Supervisors (CSBS) on June 7 published the first chapter in a series designed to examine ways to improve the supervision of the nonbank financial services industry, including mortgage. In its opening chapter, CSBS described the role of mortgage loan originators, mortgage lenders, mortgage servicers, and market conditions. In CSBS’s words:
“The goal of this opening chapter … is to provide a high-level overview of multiple participants composing the nonbank industry and provide a sense of not only the complexities of such a diverse marketplace, but also the vital role this industry plays in almost every aspect of consumer’s financial needs. In forthcoming chapters, CSBS will delve deeper into the underpinnings and history of the industry, including the need participants fulfilled and the challenges they met. We will also discuss the benefits and future of each participant and state supervision specific to that business type. CSBS will also publish papers covering the state nonbank system of supervision and how the system interfaces with other systems of supervision, enforcement and market controls. The final chapter in the paper will address challenges and opportunities for the state system and provide a roadmap for ‘reengineering’ state nonbank supervision.”
The chapter is CSBS staff-developed under the direction of the CSBS Non-Depository Supervisory Committee and is available at: https://www.csbs.org/csbs-white-paper-reengineering-nonbank-supervision
