Whitepaper BRIEF WHITEPAPER ARTICLE Know Your Regulator Contents 1 Introduction With the creation and 2 Regulatory Bodies Breakdown continuing operation of 5 Consumer Financial Protection Bureau the Bureau of Consumer Regulatory Authority Financial Protection 6 Consumer Financial Protection Bureau (CFPB) due to the Enforcement Authority Dodd-Frank Act, both 6 Supporting Organizations regulatory authority and 7 State Mortgage Regulators rulemaking authority have shifted, and confusion still abounds. CFPB, FRB, OCC, NCUA, FTC, FFIEC, FDIC, NMLS, CSBS, State Banking Agencies. Confused yet? You are not alone. With the creation and continuing operation of the Bureau of Consumer Financial Protection (CFPB) due to the Dodd-Frank Act, both regulatory authority and rulemaking authority have shifted, and confusion still abounds. Confusion exists primarily, but not exclusively, among those entities for which the primary regulatory authority is not the CFPB. Let’s take a look at the regulator landscape today whether you are a community bank, credit union, savings bank, or private mortgage lender as it relates to oversight of your mortgage operations. Who is my regulator? What role does the CFPB play to those not primarily regulated by them? Why do I care about what actions are taken or rules that are promulgated by the CFPB if they are not my primary regulator? 1 | KNOW YOUR REGULATOR Regulatory bodies breakdown Here is a breakdown of the regulatory bodies on both the federal and state level that govern or contribute to regulations on the origination and servicing of mortgage loans. An overview of the regulatory oversight of the rules/regulations and examination criteria is provided for each body. Primary Type of Entity Regulates or Examines Regulator State-Licensed State Agency Licensing, Business Model, Compliance Management System (CMS), Product Procedures, Mortgage & CFPB Statutory & Regulatory Policies & Procedures (see list of regulations below under CFPB authority), Originator, Broker, Advertising, Telemarketing Sales Rule, Prenotification Negative Options Plan, Cooling-off period Lender, or Servicer for Sales made at Home and other locations, Consumer Claims and Defenses, Credit Practices, Mail or Telephone Order Merchandise, Disclosure Requirements – Franchising & Business Opportunities, Risk Assessment, HAMP, Websites, Fair Lending, Service Provider Supervision, Privacy, UDAAP, Servicemembers Civil Relief Act, Anti-Money Laundering National Bank CFPB Charter, Business Model, Safety & Soundness, Compliance Management System (CMS), Product (total assets over Procedures, Statutory & Regulatory Policies & Procedures (see list of regulations below under $10 billion) CFPB authority), Advertising, Telemarketing Sales Rule, Prenotification Negative Options Plan, Cooling-off period for Sales made at Home and other locations, Consumer Claims and Defenses, Credit Practices, Mail or Telephone Order Merchandise, Disclosure Requirements – Franchising & Business Opportunities, Risk Assessment, CRA performance, HAMP, Websites,Fair Lending, Service Provider Supervision, Privacy, UDAAP, Servicemembers Civil Relief Act, Community Reinvestment Act, Bank Secrecy Act/Anti-Money Laundering National Bank OCC Charter, Fair Lending, IT, Asset Management, Bank Secrecy Act/Anti-Money Laundering, (total assets under Consumer Compliance (see list of regulations below under CFPB authority), Flood Disaster $10 billion) Protection Act, Community Reinvestment Act, Municipal and Government Securities Dealers, Banking Risks, Risk Management, Fiduciary activities, Credit Risk, Interest Rate Risk, Liquidity Risk, Price Risk, Operational Risk, Reputation Risk, Compliance Risk, Strategic Risk, Market Risk, Internal Controls, Compliance Program, PMI Act Bank’s CFPB & FTC Licensing/Registrations, Business Model, Safety & Soundness, Compliance Management System Nonbanking (CMS), Product Procedures, Statutory & Regulatory Policies & Procedures (see list of regulations Affiliate below under CFPB authority), Advertising, Telemarketing Sales Rule, Prenotification Negative Options Plan, Cooling-off period for Sales made at Home and other locations, Consumer Claims and Defenses, Credit Practices, Mail or Telephone Order Merchandise, Disclosure Requirements – Franchising & Business Opportunities, Risk Assessment, HAMP, Websites, Fair Lending, Service Provider Supervision, Privacy, UDAAP, Servicemembers Civil Relief Act, Anti-Competitive Practices, CAN-SPAM Rule, Anti-Money Laundering CFPB: Consumer Financial Protection Bureau OCC: Office of the Comptroller of the Currency FTC: Federal Trade Commission FRB: Federal Reserve Board FDIC: Federal Deposit Insurance Corporation NCUA: National Credit Union Administration Continued | 2 Primary Type of Entity Regulates or Examines Regulator State-Chartered Bank State Agency & FRB State Charter, Fair Lending, Acquisitions and Mergers, Financial Holding Companies, Capital (Member of FRB) Adequacy, Assets, Liabilities and Capital, Portfolio Management, Bank Secrecy Act/Anti-Money Laundering, All Regulations listed below under the CFPB authority, Federal Benefit Payments, Servicemembers Civil Relief Act, Community Reinvestment Act, Real Estate Appraisals, Trading and Capital Market activities, Bank Secrecy Act/Anti-Money Laundering Nonmember Banks FDIC Safety and Soundness, Trust Operations, IT, Regulatory Compliance (see list of regulations below (Nonmember under CFPB authority), Websites, UDAAP, Fair Lending of the FRB) State Credit Union State Agency Charter, Safety and Soundness, Fair Lending, Federal Credit Union Act, Bank Secrecy Act, & NCUA Risk-focused Programs, Internal Controls, IT, Credit Risk, Interest Rate Risk, Liquidity Risk, Transaction Risk, Reputation Risk, Delinquencies and Charge-offs, Loan Losses, Asset Liability Management, Net Worth, Regulatory Compliance (see list of regulations below under CFPB authority), Consumer Compliance, Security & Privacy (IT), Privacy, Appraisals, State and Local Reporting, Credit Practices Rule, Expedited Funds Availability Act, Children’s Online Privacy Protection Act, E-Sign Act, Servicemembers Civil Relief Act, PMI Act, Fair Lending Savings CFPB Charter, Business Model, Safety & Soundness, Compliance Management System (CMS), Product Association Procedures, Statutory & Regulatory Policies & Procedures (see list of regulations below under CFPB authority), Telemarketing Sales Rule, Prenotification Negative Options Plan, Cooling-off (total assets over $10 billion) period for Sales made at Home and other locations, Consumer Claims and Defenses, Credit Practices, Mail or Telephone Order Merchandise, Disclosure Requirements – Franchising & Business Opportunities, Risk Assessment, CRA performance, HAMP, Websites, Fair Lending, Service Provider Supervision, Privacy, UDAAP, Servicemembers Civil Relief Act, Community Reinvestment Act, Bank Secrecy Act/Anti-Money Laundering CFPB: Consumer Financial Protection Bureau OCC: Office of the Comptroller of the Currency FTC: Federal Trade Commission FRB: Federal Reserve Board FDIC: Federal Deposit Insurance Corporation NCUA: National Credit Union Administration Continued 3 | KNOW YOUR REGULATOR Primary Type of Entity Regulates or Examines Regulator Savings OCC Charter, Fair Lending, IT, Asset Management, Bank Secrecy Act/Anti-Money Laundering, Association Consumer Compliance (see list of regulations below under CFPB authority), Flood Disaster Protection Act, Community Reinvestment Act, Municipal and Government Securities Dealers, (total assets under $10 billion) Banking Risks, Risk Management, Fiduciary activities, Credit Risk, Interest Rate Risk, Liquidity Risk, Price Risk, Operational Risk, Reputation Risk, Compliance Risk, Strategic Risk, Market Risk, Internal Controls, Compliance Program, PMI Act Credit Union CFPB Charter, Business Model, Safety & Soundness, Compliance Management System (CMS), (total assets over Product Procedures, Statutory & Regulatory Policies & Procedures (see list of regulations $10 billion) below under CFPB authority), Advertising, Telemarketing Sales Rule, Prenotification Negative Options Plan, Cooling-off period for Sales made at Home and other locations, Consumer Claims and Defenses, Credit Practices, Mail or Telephone Order Merchandise, Disclosure Requirements – Franchising & Business Opportunities, Risk Assessment, CRA performance, HAMP, Websites, Fair Lending, Service Provider Supervision, Privacy, UDAAP, Servicemembers Civil Relief Act, Community Reinvestment Act, Federal Credit Union Act, Bank Secrecy Act/Anti-Money Laundering Credit Union NCUA Charter, Safety and Soundness, Fair Lending, Federal Credit Union Act, Bank Secrecy Act, (total assets under Risk-focused Programs, Internal Controls, IT, Credit Risk, Interest Rate Risk, Liquidity Risk, $10 billion) Transaction Risk, Reputation Risk, Delinquencies and Charge-offs, Loan Losses, Asset Liability Management, Net Worth, Regulatory Compliance (see list of regulations below under CFPB authority), Consumer Compliance, Security & Privacy (IT), Privacy, Appraisals, State and Local Reporting, Credit Practices Rule, Expedited Funds Availability Act, Children’s Online Privacy Protection Act, E-Sign Act, Servicemembers Civil Relief Act, PMI Act, Bank Secrecy Act/Anti-Money Laundering Finance Companies FTC Telemarketing Sales Rule, Prenotification Negative Options Plan, Cooling-off period for Sales (if not included in made at Home and other locations, Consumer Claims and Defenses, Credit Practices, Mail or other entities above) Telephone Order Merchandise, Disclosure Requirements