CSBS Releases Model Prudential Standards for Non-Bank Mortgage Agents | Weiner Brodsky Kider PC
The Conference of State Bank Supervisors (CSBS) recently released the Final Model of State Regulatory Prudential Standards for Non-Bank Mortgage Agents (Final Model Standards) to establish a uniform State policy for supervision covered non-bank mortgage agents.
Final model standards are subject to voluntary adoption by each state and do not constitute law, regulation, official guidance, or an interpretation of a state agency where a state has not adopted such standards. The final model standards are mainly grouped into two categories: (1) financial position and (2) corporate governance. The section on financial condition generally covers the capital and liquidity requirements for the covered institutions. In addition, the section on corporate governance includes requirements for the board of directors, internal audits, external audits and risk management.
With few exceptions, the final model standards generally apply to “non-bank mortgage services with portfolios of 2,000 or more residential mortgages of 1 to 4 units managed or managed for others and operating in two states or more at the end of the most recent calendar year, said in the NMLS mortgage appeal report. By the standards of the final model, note that whole loans held and loans provisionally serviced prior to sale are not considered “managed residential mortgages”. In addition, the Final Model Standards do not apply to nonprofit mortgage managers or housing finance agencies, and the financial standing requirements of the Final Model Standards do not apply to managers who hold and / or only perform reverse mortgage services or vice versa. portfolio of mortgages administered by term mortgage managers that might otherwise be hedged. In addition, the capital and liquidity requirements of the Final Model Standards have limited application to entities that only outsource to others.