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.
To respond to this need, CSBS established in 2014 the "Mortgage Servicing Rights Task Force." The Task Force analyzed this growth, examining the mortgage servicing market and developing recommendations for prudential standards for non-bank servicers. The Task Force also evaluated corporate governance, operational risk, and financial capacity changes these firms have made since the mortgage crisis.
Standards for Non-Bank Mortgage Servicers
After engagement with industry participants, state and federal regulators, and other stakeholders, the Task Force proposed a set of prudential regulatory standards that would apply to non-bank mortgage servicing companies.
The Task Force also requested public comments concerning the proposed regulatory standards.