‘Regulation by enforcement’ makes compliance unpredictable, new MBA chair says


The Consumer Financial Protection Bureau’s practice of “regulation by enforcement” forces mortgage companies to develop compliance standards based on the mistakes of their peers, rather than clear guidance from the enforcement agency, according to David Motley, the new chairman of the Mortgage Bankers Association.

“The CFPB continues to enforce regulation through enforcement action rather than through clear rules of the road that the industry can follow,” Motley said in an interview with NMN, explaining that regulation by enforcement leads companies to question themselves based on other companies’ errors and develop policies and procedures in response.

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