On January 5, 2011, the Consumer Financial Protection Bureau
("CFPB") launched the first federal nonbank supervision
program. "We will begin dealing face-to-face with payday
lenders, mortgage servicers, mortgage originators, private student
lenders and other firms that often compete with banks but have
largely escaped any meaningful federal oversight," said
Richard Cordray the newly appointed director of the CFPB.
Coverage of the Nonbank Supervision Program
Under the Dodd-Frank Wall Street Reform and Consumer Protection
Act ("Dodd-Frank Act"), a "nonbank" is a
company that offers or provides consumer financial products or
services but does not have a bank, thrift, or credit union charter.
Nonbanks include companies such as mortgage lenders, mortgage
servicers, payday lenders, consumer reporting agencies, debt
collectors, credit counseling agencies, and money services
companies.
