The Mortgage Bankers Association (MBA) called on the Consumer Financial Protection Bureau (CFPB) to postpone compliance deadlines for its Nonbank Registration Regulation, citing concerns over implementation timelines and undue regulatory burden amid a new presidential freeze on pending rules.
“The Bureau has a duty to limit regulatory burden and consider costs and benefits,” MBA officials wrote in their January 24 letter to CFPB Director Rohit Chopra.
The request follows President Donald Trump’s January 20 executive order directing federal agencies to implement a 60-day postponement of recently published regulations that haven’t yet taken effect so the new administration has time to review them.
The CFPB rule, issued June 3, 2024, requires covered nonbank financial institutions to register and report when they become subject to certain agency or court orders. The MBA estimates the new rule impacts roughly 800 nonbank lenders.
While larger institutions’ deadlines have passed, smaller nonbanks under CFPB supervision face an April 14 registration deadline; all other covered nonbanks must register by July 14.
“President Trump’s executive order implementing a regulatory freeze requires the review and eventual rescission of the CFPB’s costly and duplicative non-bank consent order registry,” MBA President and CEO Bob Broeksmit said in a statement provided to RISMedia.
“In earlier comments submitted to the CFPB on the proposed rule, state regulators stated that this information is already publicly available and asked the CFPB not to proceed. The CFPB should not impose these burdensome costs on lenders and waste their resources to create a separate database,” Broeksmit said.
In those previous comments, the MBA noted that much of the reporting the CFPB is asking nonbank lenders for is already public through the Nationwide Multistate Licensing System (NMLS) Consumer Access website.
At press time, the CFPB had not yet responded to the MBA’s delay request.
