On May 25th, 2012, The Consumer Financial Protection Bureau (CFPB) issued proposed rules to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (DFA), which grants the CFPB authority to supervise a nonbank covered person when the CFPB has reasonable cause to determine the person is engaging in conduct that poses risk to consumers with regard to the offering of consumer financial products and services. The proposed rule establishes procedures for the CFPB to exercise authority over nonbank covered persons, however; it does not impose any new or additional consumer protection requirements upon the person.
A Nonbank Covered Person is an entity or someone that offers or provides consumers: (1) residential mortgage loans, including origination, brokerage, and servicing services; (2) private education loans; or (3) payday loans. The proposed rules exclude insured depository institutions and credit unions, or in the case of such entities with assets of more than $10 billion, their affiliates. The comment period for the proposed rules closed July 24th, 2012 and CSi will continue to monitor the status while the CFPB prepares to issue final rules.
Read full article here: http://www.gpo.gov/fdsys/pkg/FR-2012-05-25/pdf/2012-12718.pdf