The Consumer Financial Protection Bureau, or CFPB, implementation team currently housed within the US Department of the Treasury and the Conference of State Bank Supervisors, CSBS, signed a memorandum of understanding, or MOU, to establish a foundation of state and federal coordination and cooperation for supervision of providers of consumer financial products and services. The CFPB was established by the Dodd-Frank Act.
In particular, state regulators and the CFPB will seek to promote consistent examination procedures and effective enforcement of state and federal consumer laws and to minimize regulatory burden and efficiently deploy supervisory resources. In addition, the MOU provides that state regulators and the CFPB will consult each other regarding the standards, procedures, and practices used by state regulators and the CFPB to conduct compliance examinations of providers of consumer financial products and services, including non-depository mortgage lenders, mortgage servicers, private student lenders, and payday lenders.
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