“Too often in the past, the CFPB has characterized something as guidance that is actually a rule Congress requires to go through the notice-and-comment process,” said Rob Nichols, ABA president and CEO.
He added that using guidance documents in this way “creates unnecessary confusion for regulated entities, deprives the industry of fair notice, and undermines the legitimacy of the regulatory process.”
The Mortgage Bankers Association (MBA) also expressed support for the CFPB’s April 11 memo initiating the review. The group said it had previously submitted a list of policy statements, interpretative rules, and advisory opinions that it believed should be retained in the mortgage space.
According to the MBA, it appears that all the items on that list were retained, but the group is conducting a full analysis to confirm.
Included in the MBA’s list were documents on supervisory practices during disaster emergencies, interpretative rules on loan officer training and screening, and guidance related to mortgage servicing transfers.