NACARA ANNUAL MEETING 2014
STATE COORDINATING COMMITTEE
AND THE CFPB
Charles A. Vice, Kentucky DFI Commissioner
Edwin Chow, CFPB Regional Director
Moderator: Chuck Cross, CSBS
The Path to Coordination
Coordinated
Bank
Supervision
MMC
Agreement
2010
DoddFrank
CFPB/State
Framework
Info
Sharing
MOU
CFPB
Standup
State
Governance
Agreement
2014 Exam
Schedule
2015
Exam
Schedule
SCC Members
ASSOCIATION
REPRESENTATIVE
CSBS
Charles A. Vice, KY
Manny Flores, IL
NACCA
Steven O’Shields, TX
Joe Crider, MO
NACARA
Mike Larsen, ID
Carmine Costa, CT
MTRA
Doug Buras, LA
Robin Lobb, KS
AARMR
Cindy Begin, MA
Rod Carnes, GA
NASCUS
Linda Jekel, WA
Mary Ellen O’Neil, CT
Support Staff
Chuck Cross, CSBS
Sabrina Cotter, NASCUS
CFPB Coordination Leadership
REGION
REPRESENTATIVE
West
Edwin Chow – Primary Coordination RD
Northeast
Steve Kaplan – Regional Director
Midwest
Anthony Gibbs – Regional Director
Southeast
James Carley – Regional Director
Headquarters
Steve Antonakes
David Bleicken
Chris Young
Clay Coon
Nick Krafft
What is NACARA’s Role in
Coordination?
• Voting member of the SCC with 2 reps
• Leadership on debt collection supervision
The Framework – 05/20/2013
Responsibilities:
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Coordinate Examination Schedules
Quarterly Update Meetings
Independent Examination Schedules
Designation of SPC & EIC
Necessary Processes & Additional Protocols
Notices
Corrective Actions Subject to this Framework
Enforcement of Laws, Support
Desirables:
 Exchange of Information on Independent Exams
 Exchange of Information on Non-Independent Exams
Coordinated Examination Schedule
• Develop a list of covered entities - The CFPB and the SCC
will annually develop a list of Covered Non-Depository
Entities that are potentially subject to examination.
• MMC: Mortgage Origination and Servicing
• NACCA:
• Payday Lending
• Student Lending
• Auto Finance
• NACARA: Debt Collector
• MMET: Money Transmission, Emerging Payments, VC
• Identify list of entities to examine - The SCC and the CFPB
will identify Covered Non-Depository Entities that are to be
examined under this Framework.
Exchange of Information
 Secure means of transfer from CFPB to the States
 CSBS filter by MOU and statutory authority
 Archiving CFPB documents
 Secure delivery upon authority confirmation
 Email today . . . Website coming soon!
 Secure means of transfer from States to CFPB
 CSBS collection of related documents and
forward delivery; or
 CSBS notification and facilitation of individual
state delivery to CFPB
 Maintenance and protection of information
 Initially for multi-state; phase in single state
CFPB Examination Procedures
• Compliance Risk Management Assessment
– Focus of review
– Part of examination
– Time to complete
• Industry Product Line (IPL)
• Request Letter
• Supervisory Letters and Reports of Examination
• Enforcement Actions
State Examination Procedures
• Mortgage: MMC management and processes
– Established and mature
– ComplianceEase software for origination exams
• Debt Collection: NACARA
– Processes in development
• Payday Lending: NACCA
– IL has the lead for the first exam
– Process development early 2015
– Modify CFPB procedures to fit states
– Work group will be established
• Money Transmitters: MMET
– Larger participant rule gives green light
– Much work to be done
SCC Expectations
• Robust Multi-state Examination Process
• Identification of Entities to Examine
• Information Flow – CSBS as intermediary
– Now – CSBS to States
– CSBS Information request – regulatory authority
– Future – States to CSBS
• Feedback on Process – how do we make it
better?
State System is Complicated
• There are ultimately 102 agencies to
coordinate across at least 9 industries
• We can only do this together
• Coordination means both multi-state
and inter-agency
• Single Points of Contact (SPCs) in your
agency are our lifeline – keep them
current
2014 Coordinated Exam Schedule
• 6 Mortgage Exams
– Origination
– Servicing
• 2 Debt Collector Exams
• 1 Payday Lender Exam
2014 Examination Participation
• MMC is overseeing mortgage for the SCC
• In the first 3 mortgage exams:
– 47 states & 92 examiners are participating
– All 4 CFPB Regions
• Debt Collection led by CT and ID
– 8 states are participating in two exams
– 2 CFPB Regions
2015 Proposed Schedule
• 12 to 19 Exams Proposed
• Industries to be examined:*
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Mortgage Origination (3-5 exams)
Mortgage Servicing (3-4 exams)
Payday Lending (1-3 exams)
Debt Collection (3 exams)
Money Transmitter (2-4 exams)
* Based on how you count the #s.
What is Next?
• Ultimate Goal – more coordinated
examinations
– Leverage off each other’s work
– Reduced burden on regulated
entity
– Coordinated Supervisory Actions
• Task Force
– January 2015
– Review prior coordinated
examinations
– Coordinated Request Letter
– Coordinated Examination Process
– Coordinated Report
QUESTIONS?