Category: Lender Supervision
Regulatory Lender Supervision involves the oversight and enforcement of laws and regulations that govern financial institutions’ lending practices. This process is managed by government agencies or regulatory bodies, such as the Consumer Financial Protection Bureau (CFPB) or the Office of the Comptroller of the Currency (OCC), which monitor lenders to ensure compliance with legal standards, including fair lending practices and consumer protection laws. The supervision includes regular audits, assessments of lending practices, and investigations into complaints or violations. By enforcing regulations and imposing penalties for non-compliance, regulatory lender supervision aims to maintain the integrity of the financial system, protect consumers from unethical or predatory practices, and promote fair and transparent lending.