The Conference of State Bank Supervisors has rolled out what it calls its “Catalyst Initiative,” which, according to the group, “seeks to address state financial regulatory agencies’ key supervisory challenges and reduce regulatory burden.”
The initiative, announced during CSBS’ recent Mortgage Policy Summit in Washington, D.C., will focus on partnering with the private sector to use modern technology and improve the efficiency and effectiveness of financial services supervision, CSBS officials said.
“The Catalyst Initiative reflects the state system’s commitment to innovation,” said CSBS President and CEO Brandon Milhorn. “Just as NMLS transformed mortgage industry regulation, new supervisory technology can fundamentally change how the states help protect consumers and financial stability. These investments in new tools — made in parallel with ongoing private sector efforts — will provide better data, improved analytics, and more effective systems to quickly identify and mitigate financial risks.”
For this year, the Catalyst Initiative will focus on two areas for innovation and improvement, CSBS said. It will examine ways to make bank data reporting less costly, more transparent and timelier than the current quarterly submission process. It also will include experimenting with ways to leverage the new Mortgage Industry Standards Maintenance Organization, or MISMO, mortgage compliance dataset. The dataset was created to help regulators more efficiently review mortgage files for compliance with state and federal laws.
New activities will be planned for subsequent years.
