Question: Your clients are non-mortgage, non-depository financial services providers, such as debt buyers. Can you tell me a bit about the regulatory environment for these providers?
There are varying, inconsistent regulatory schemes across the country. We are hopeful that the use of the NMLS process will simplify licensing and reduce the costs of compliance for industry members who are subject to licensure.
Question: What key issues do you anticipate the industry will be dealing with in the coming few years?
The rules that ultimately are adopted in the wake of the CFPB’s advance notice of proposed rulemaking are likely to be a game-changer. The federal government has never implemented rules pertaining to the Fair Debt Collection Practices Act (FDCPA). The CFPB has an opportunity to deal with many issues that need to be addressed, such as the use of technologies that did not exist when the FDCPA was enacted. We hope that the CFPB will address critical issues for the collection industry, such as voicemail messages and use of email.
Question: How has NMLS had an impact on how your clients do business?
It is too soon to tell in the non-mortgage arena. However, some portions of the process do not appear to be geared to non-mortgage industry clients. It may take some time to get past the round hole/square peg issues that arise because debt buyers and law firms are different businesses than mortgage lenders and servicers.