Sept/Oct 2021 Reverse Mortgage Magazine

LOAN OFFICERS KNOW the work of the Conference of State Bank Supervisors (CSBS) because it is the regulatory association that manages the Nationwide Mortgage Licensing System (NMLS) that is the central clearing house for state-by-state licensing. Nonbanks—basically the com- panies that offer financial services but don’t have deposits—know CSBS because it coordinates with the more than 50 state banking reg- ulators who oversee the mortgage industry, says Chuck Cross, senior vice president of nonbank supervision at CSBS. The CSBS, founded in 1902, essentially acts as the trade organization for the state regulators who license mortgage institutions; process the quarterly call reports; respond to consumer complaints; and conduct examinations and investigations to ensure that mortgage companies and servicers are dotting the i’s and crossing the t’s when doing business in a given state. “It’s important for NRMLA members to understand that they may not only be audited by federal examiners but by state- level mortgage examiners, too, and that compliance with state mort- gage laws that cross over into reverse is critically important,” says Steve Irwin, NRMLA president. “This applies to both [Federal Housing Administration Home Equity Conversion Mortgages] (HECMs) and proprietary reverse mortgages.” Jay Wright, a partner in the southeastern U.S.-based law firm Bradley, agrees, saying most people focus on the federal agencies, such as the Department of Housing & Working with State Regulators CSBS Expert Offers Tips, Updates on New Initiatives By Thomas A. Barstow Chuck Cross Steve Irwin 22 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2021