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10.9 Supervised Nondepository Entities

<< Title X Overview

10.9 Supervised Nondepository Entities

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10.9.     Supervised Nondepository Entities.  The Bureau has the authority to supervise three categories of nondepository entities. ("Supervised Nondepositories").[§1024]  

10.9.1.              Participants in Mortgage Lending.  The Bureau will have supervisory authority over any nondepository that offers or provides origination, brokerage, or servicing of loans secured by real estate for use by consumers primarily for personal, family, or household purposes. 

10.9.2.              Larger Participants in Markets for Other Consumer Financial Products or Services.  The Bureau will have supervisory authority over larger participants in markets for other consumer financial products, as defined by rule.

The Bureau will consult with the FTC prior to issuing a rule to define larger participants in markets for other consumer financial products.  The Bureau will issue its initial rule within 1 year of the Bureau Transfer Date. 

10.9.3.              Designated Nondepositories.  The Bureau will have supervisory authority over any nondepository Covered Person, by order, if it determines the entity is engaging in conduct that poses risks to consumers with regard to the offering of consumer financial products.  The Bureau must give notice and an opportunity to respond to the affected entity prior to issuing an order.  This determination may be based on complaints or information from other sources. 

10.9.4.              Private Education Lenders.  The Bureau will have authority over any nondepository that offers or provides to a consumer any private education loan, as defined in the Truth in Lending Act. 

10.9.5.              Payday Lenders.  The Bureau will have authority over any nondepository that offers or provides payday loans to consumers. 

10.9.6. Service Providers to Covered Entities.  Service providers to Supervised Nondepositories will be subject to the authority of the Bureau to the same extent that service providers to banks are subject to the authority of the appropriate Federal banking agency.