Washington, D.C. — The Conference of State Bank Supervisors (CSBS) has announced the formation of a Mortgage Servicing Rights Task Force to develop options for prudential standards for non-bank mortgage servicers.
In recent years, there has been a significant growth of mortgage servicing assets in non-depository servicers. These entities are licensed and regulated by some states. These firms provide a critical function in our housing finance system. It is important for the states to understand how this growth should inform changes to the regulatory framework.
The Task Force will be analyzing this growth, examining the current mortgage servicing market and developing recommendations for prudential standards for non-bank servicers. The Task Force will also be evaluating any corporate governance, operational risk, and financial capacity changes these firms have made since the mortgage crisis. This will help inform best practices. Through this process CSBS will be engaging with industry participants, federal agencies, and other stakeholders.
“There have been significant changes in mortgage finance following the mortgage crisis,” said CSBS President and CEO John W. Ryan. “As the industry continues to change and policy makers contemplate housing finance reform, it is important we provide an appropriate regulatory framework to instill market confidence and ensure consumer protection.”
The Mortgage Servicing Rights Task Force includes the following state regulators:
- Bret Afdahl, Director, South Dakota Division of Banking
- Charles Cooper, Banking Commissioner, Texas Department of Banking
- Mike Rothman, Commissioner, Minnesota Department of Commerce;
- Manny Flores, Acting Secretary, Illinois Department of Financial and Professional Regulation;
- Deb Bortner, Director of Consumer Services, Washington Department of Financial Institutions;
- Victoria Reider, Executive Deputy Secretary of Banking and Securities, Pennsylvania Department of Banking and Securities;
- Dan Burnstein, Executive Deputy Superintendent, New York State Department of Financial Services;
- Paul Gibson, Senior Deputy Commissioner, Massachusetts Division of Banks; and
- Johnny Vuong, Corporations Counsel, California Department of Business Oversight.
The Task Force anticipates delivering an initial report to the CSBS Board of Directors in early December 2014.