MBA requests CFPB delay implementation of Nonbank Registration rule

The Mortgage Bankers Association (MBA) has formally requested the Consumer Financial Protection Bureau (CFPB) delay the compliance deadlines associated with its Nonbank Registration Regulation (the Rule). This request follows President Trump’s recent executive order titled “Regulatory Freeze Pending Review,” issued on January 20, 2025, which instructs federal agencies to consider postponing regulations for review.

In a letter dated January 24, 2025, addressed to CFPB director Rohit Chopra, the MBA highlighted its concerns regarding the Rule’s costs and implementation challenges. The Rule, effective June 3, 2024, mandates nonbank financial institutions to register with the CFPB and report when they are subject to certain regulatory orders. While deadlines for large nonbank entities have passed, smaller entities are required to comply by April 14, 2025, with broader compliance expected by July 14, 2025.

The MBA urged the CFPB to postpone these deadlines by at least 60 days and suspend data collection requirements for entities currently registering, or those facing new orders during the freeze period. Furthermore, the MBA emphasized that the CFPB should halt actions involving the publication of orders and the creation of the associated registry during this review.

Pete Mills, senior vice president of residential policy at the MBA, wrote that the Rule imposes a “costly and duplicative reporting framework” that adds a regulatory burden without sufficient justification. He also noted the insufficient timeline for implementation and called for alignment with the administration’s regulatory review priorities.

MBA president and CEO Bob Broeksmit commented: “President Trump’s executive order implementing a regulatory freeze requires the review and eventual rescission of the CFPB’s costly and duplicative non-bank consent order registry. In earlier comments submitted to the CFPB on the proposed rule, state regulators stated that this information is already publicly available and asked the CFPB not to proceed. The CFPB should not impose these burdensome costs on lenders and waste their resources to create a separate database.”