Effective financial regulation requires strong relationships among states and between state and federal regulators. These relationships form the basis for coordination and collaboration across a range of supervisory tools and processes.
In October 2023, CSBS announced that 44 state financial agencies had reached settlements with ACI Payments, Inc., for erroneously initiating electronic transactions totaling $2.3 billion from the accounts of 480,000 mortgage-holders serviced by Mr. Cooper (formerly known as Nationstar Mortgage, LLC). State regulators levied $10 million in fines through a multistate enforcement action led by regulators from Arkansas, Connecticut, Maryland, and Texas, with support from CSBS.
CSBS continues to pursue collaborative partnerships with federal agencies where there is shared jurisdiction. Whether the focus is on mortgage supervision and coordination with CFPB and the Federal Housing Finance Agency, or Bank Secrecy Act/Anti-Money Laundering supervision and coordination with FinCEN, establishing strong working relationships is a priority for CSBS. In 2023, we advanced conversations with federal agencies by highlighting state authorities and driving awareness of the disruptions to regulators and industry when there is a lack of coordination among supervisors.
CSBS shares data from our Annual Survey of Community Banks with the FDIC, which applies it to the FDIC Community Bank Study, a widely used and relied-upon resource in the banking community. Specifically, the data CSBS provides is central to the FDIC’s exploration of how community banks use technology.
Industry engagement has been and continues to be a priority of state regulators to maintain strong relationships and gather feedback on important issues. The CSBS Bankers Advisory Board, comprised of community bank CEOs, advises the CSBS Board of Directors in pursuit of the organization’s goals and to provide industry input on current issues.