CFPB Presses Case for Nonbank CRA Regs
Following Director Chopra’s call for more state CRA rules covering nonbanks when he voted in favor of the new federal CRA regulation, the CFPB today issued a report echoing the need for greater nonbank oversight in state CRA rules due to increasing nonbank market influence. The analysis highlights that nonbanks originated 64 percent of conventional home mortgage loans compared to the banks’ 25 percent as of 2021. The report also notes that state regulations and enforcement mechanisms lack authority to issue civil monetary penalties or impose “structural” remedies for failing to meet state reinvestment requirements.