CSBS Issue Talking Points - March 2021

• The states continually make efforts to improve and harmonize the state regulatory system through SES, the MMLA, the MSB Model Law and the Multistate MSB Examination Taskforce. • State MSB supervision requires strict consumer protection standards that prevent the occurrence of risky and unsafe business practices. • Federal preemption of state supervisory authority over MSBs will inhibit the states from enforcing their own laws governing licensure, examination, and enforcement on national licensees. • The alternative proposal for federal legislation preserves state regulatory authority and follows the successful structure of the SAFE Act utilized by mortgage loan originators across the nation. • The two-year implementation period provides sufficient time for states to adopt the requirements and appeases Congress’ desire for a swift solution. SME Contact: Camille Polson, Analyst, Policy Development: 202.407.7165 or CPolson@csbs.org Date Updated: 1/15/2021

FOR STATE REGULATOR USE ONLY