What Are the CFPB, FDIC and NMLS?


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All three of these organizations were formed to protect the consumer by enforcing rules and regulations within the financial marketplace..

CFPB (Consumer Financial Protection Bureau): This agency was created to provide a single point of accountability to enforce federal consumer financial laws and protect consumers in the finance sector. The work of the CFPB includes rooting out unfair, deceptive, or abusive acts or practices thru writing rules, supervising companies and enforcing the law as it pertains to consumer finance and discrimination.

FDIC (Federal Deposit Insurance Corporation): This is an independent agency of the federal government that was created in 1933 to examine and supervise financial institutions. The FDIC insures consumer deposits up to $250,000 per depositor, per insured bank for each account ownership category. This agency is in place to maintain stability and public confidence in the nation’s financial system.    If a bank is FDIC insured, they must display the Member FDIC logo for customers to see.

NMLS (Nationwide Multistate Licensing System): NMLS is the sole system of licensure for mortgage companies for 58 different state agencies and the sole system of licensure for Mortgage Loan Originators for 59 state and territorial agencies. It is the system of record for non-depository, financial services licensing or registration and is intended to provide improved coordination and information sharing among regulators, increase industry efficiency and enhance consumer protection on a national level.

These organizations are worth knowing, so keep this as a reference.