Expanding the Resources Available to Federal Regulators (H.R. 4626)
Do you support or oppose this bill?
What is H.R. 4626?
(Updated January 31, 2017)
This bill would grant state and federal
regulatory officials access to national mortgage information systems while staying in line with privacy laws. By amending the S.A.F.E. Mortgage Licensing Act of 2008, regulators would have access to the to Nationwide Mortgage Licensing System and Registry (NMLS), and the government would no longer consider it a loss of confidentiality.
H.R. 4626 would not create any privilege, new licensing, or registration requirements through NMLS. It would allow for existing confidentiality or privilege to continue when
regulatory information is shared among state and federal regulators. This "regulatory information" usually concerns the expanded financial services
industries.
Argument in favor
Would help states promote smart and efficient regulation over state-licensed, non-bank financial services providers.
Argument opposed
We should be wary of opening up the information guarded in national mortgage information systems — especially to federal regulators
Impact
Anyone with information in the Nationwide Mortgage Licensing System and Registry, and state and federal regulators.
Cost of H.R. 4626
The CBO does not have a cost estimate at this time.
Additional Info
In Depth:
From the Conference of State Bank Supervisors (in favor):
"State banking regulators supervise over 5,100 state-chartered banks.
Further, most state banking departments also regulate a variety of
non-bank financial services providers, including mortgage lenders, money
transmitters, payday lenders, and check cashers.
...
More broadly, state regulators advocate for
"right-sized" regulations that are appropriately tailored to a financial
institution's size, risk, complexity, and scope. This tailored
regulatory approach is especially crucial for community banks, whose
portfolio lending and relationship-based business model unduly suffers
under the burden of what we might call "one-size-fits-all" regulations.
One-size-fits-all regulations treat all bank business models the same,
ignoring the vast differences between complex global financial
conglomerates and small community banks.
Media:
The HillInsurance News Net
(Photo Credit: Mortgage Compliance Magazine)
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