CFPB Announces No Enforcement of Nonbank Registry – Will the CFPB Rescind the Registry Rule?

Today, April 11, 2025, the CFPB announced that, with respect to the CFPB’s Nonbank Registry final rule issued last June (which I wrote about here), “it will not prioritize enforcement or supervision actions with regard to entities that do not satisfy future deadlines under the regulation to submit registration information.”  The CFPB also noted that this applies to, “but is not limited to, the upcoming April 14, 2025 registration deadline for entities subject to 12 CFR 1092.206(a)(2) and July 14, 2025 registration deadline for entities subject to 12 CFR 1092.206(a)(3).”  This means that nonbank mortgage companies, which were subject to the April deadline (but essentially had an exemption for actions on the NMLS), will most likely not face enforcement or supervisory actions from the CFPB for not complying with the rule. 

In addition, the CFPB stated that it is “further considering issuing a notice of proposed rulemaking to rescind the regulation or narrow its scope.”  It appears that the CFPB may not be planning for any enforcement or supervision with respect to this rule, and that current leadership of the CFPB will propose to rescind this rule. But the CFPB appears to be considering merely narrowing the scope of the rule, which would leave the rule on the books in some form. In addition, the rule is technically still on the books, despite the CFPB messaging non-enforcement, and thus, compliance is still required. The industry should keep pay attention for the proposed rule and plan on commenting, so that this largely superfluous and unnecessary rule is deleted.

Please email me at rich@garrishorn.com if you would like to discuss.