With President Obama’s recent appointment of Richard Cordray as the Consumer Financial Protection Bureau’s (CFPB) new director, the organization is now poised to begin regulating nonbank entities dealing in financial products.
Some of the nonbank organizations targeted for supervision include mortgage lenders and servicers, payday lenders, consumer reporting agencies, debt collection companies, private student lenders and other firms that often compete with banks, but were previously outside federal oversight. In addition, Cordray also announced that he would use the authority granted to the CFPB by the Dodd-Frank Act to conduct individual examinations. The degree and frequency of these examinations is contingent upon the risks posed to customers, as well as the nonbank’s business volume, product types and the extent of existing state oversight.
Wolters Kluwer Financial Services has been following these developments with a keen eye toward how best to prepare our nonbank customers for the upcoming changes. With more than 40 years of compliance expertise, we are at the forefront of compliance monitoring and product implementation. Wolters Kluwer Financial Services employs more than 400 compliance and risk management professionals with extensive industry experience, including lawyers, compliance analysts and specialists as well as former regulators and compliance officers.
As examiners look for a nonbank’s internal ability to detect, prevent and remedy any violations that might harm consumers, Wolters Kluwer Financial Services has put solutions in place to ensure that you are compliant with federal consumer financial laws. By partnering with us to identify any compliance and process gaps, our compliance experts can recommend solutions, help you resolve challenges, improve your workflow and mitigate risk.
With any significant change comes great uncertainty. However, you can be sure that Wolters Kluwer Financial Services will be first in line with effective solutions to help nonbanks successfully navigate the changes ahead.
I invite you to register for our blog updates and contact your Wolters Kluwer Financial Services' sales representative for more support and information.
Related download: Wolters Kluwer Financial Services Compliance Approach white paper
Authored by Jason Marx, Vice President and General Manager, Mortgage and Indirect Lending at Wolters Kluwer Financial Services