FINWIRE®

A collaborative effort to improve supervision of subprime mortgage lenders

July 19th, 2007

Three US federal agencies and two associations have initiated a pilot project to conduct targeted consumer-protection compliance reviews of selected non-depository lenders with significant subprime mortgage operations.

The project to begin later this year will focus on non-depository subsidiaries of bank and thrift holding companies as well as mortgage brokers doing business with, or working for, these entities.

Additionally, the states will conduct coordinated examinations of independent state-licensed subprime lenders and their associated mortgage brokers.

The agencies will select a sample of entities under their respective supervisory or other authorities for review or investigation.

The agencies will also share information about the reviews and investigations, take action as appropriate, collaborate on the lessons learned, and seek ways to better cooperate in ensuring effective and consistent reviews of these institutions.

The agencies collaborating are the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision, the Federal Trade Commission, and state agencies represented by the Conference of State Bank Supervisors, The American Association of Residential Mortgage Regulators.

Entry Filed under: FINWIRE®