---
kind: "section"
citation: "12 U.S.C. § 5514"
title: "12"
title_heading: "Banks and Banking"
number: "5514"
heading: "Supervision of nondepository covered persons"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5514"
units:
  - "Chapter 53 — Wall Street Reform and Consumer Protection"
  - "Subchapter V — Bureau of Consumer Financial Protection"
  - "Part B — General Powers of the Bureau"
---

# §5514. Supervision of nondepository covered persons

- (a) **Scope of coverage—**
  - (1) **Applicability—** Notwithstanding any other provision of this title,[^1] and except as provided in [paragraph (3)](#a-3), this section shall apply to any [covered person](/usc/12/5481.md?p=6) who—
    - (A) offers or provides origination, brokerage, or servicing of loans secured by [real estate](/usc/12/1707.md?p=g) for use by [consumers](/usc/12/5481.md?p=4) primarily for personal, family, or household purposes, or loan modification or foreclosure relief services in connection with such loans;
    - (B) is a larger participant of a market for other [consumer](/usc/12/5481.md?p=4) financial products or services, as defined by rule in accordance with [paragraph (2)](#a-2);
    - (C) the [Bureau](/usc/12/5301.md?p=4) has reasonable cause to determine, by order, after notice to the [covered person](/usc/12/5481.md?p=6) and a reasonable opportunity for such [covered person](/usc/12/5481.md?p=6) to respond, based on complaints collected through the system under [section 5493(b)(3) of this title](/usc/12/5493.md?p=b-3) or information from other sources, that such [covered person](/usc/12/5481.md?p=6) is engaging, or has engaged, in conduct that poses risks to [consumers](/usc/12/5481.md?p=4) with regard to the offering or provision of [consumer](/usc/12/5481.md?p=4) financial products or services;
    - (D) offers or provides to a [consumer](/usc/12/5481.md?p=4) any private education loan, as defined in [section 1650 of title 15](/usc/15/1650.md), notwithstanding [section 5517(a)(2)(A) of this title](/usc/12/5517.md?p=a-2-A) and subject to [section 5517(a)(2)(C) of this title](/usc/12/5517.md?p=a-2-C); or
    - (E) offers or provides to a [consumer](/usc/12/5481.md?p=4) a payday loan.
  - (2) **Rulemaking to define covered persons subject to this section—** The [Bureau](/usc/12/5301.md?p=4) shall consult with the Federal Trade [Commission](/usc/12/5301.md?p=5) prior to issuing a rule, in accordance with [paragraph (1)(B)](#a-1-B), to define [covered persons](/usc/12/5481.md?p=6) subject to this section. The [Bureau](/usc/12/5301.md?p=4) shall issue its initial rule not later than 1 year after the [designated transfer date](/usc/12/5481.md?p=9).
  - (3) **Rules of construction—**
    - (A) **Certain persons excluded—** This section shall not apply to [persons](/usc/12/5481.md?p=19) described in section [5515(a)](/usc/12/5515.md?p=a) or [5516(a)](/usc/12/5516.md?p=a) of this title.
    - (B) **Activity levels—** For purposes of computing activity levels under [paragraph (1)](#a-1) or rules issued thereunder, activities of affiliated [companies](/usc/12/5381.md?p=a-5) (other than [insured depository institutions](/usc/12/5301.md?p=18-A) or [insured credit unions](/usc/12/5481.md?p=17)) shall be aggregated.
- (b) **Supervision—**
  - (1) **In general—** The [Bureau](/usc/12/5301.md?p=4) shall require reports and conduct examinations on a periodic basis of [persons](/usc/12/5481.md?p=19) described in [subsection (a)(1)](#a-1) for purposes of—
    - (A) assessing compliance with the requirements of [Federal consumer financial law](/usc/12/5481.md?p=14);
    - (B) obtaining information about the activities and compliance systems or procedures of such [person](/usc/12/5481.md?p=19); and
    - (C) detecting and assessing risks to [consumers](/usc/12/5481.md?p=4) and to markets for [consumer](/usc/12/5481.md?p=4) financial products and services.
  - (2) **Risk-based supervision program—** The [Bureau](/usc/12/5301.md?p=4) shall exercise its authority under [paragraph (1)](#b-1) in a manner designed to ensure that such exercise, with respect to [persons](/usc/12/5481.md?p=19) described in [subsection (a)(1)](#a-1), is based on the assessment by the [Bureau](/usc/12/5301.md?p=4) of the risks posed to [consumers](/usc/12/5481.md?p=4) in the relevant product markets and geographic markets, and taking into consideration, as applicable—
    - (A) the asset size of the [covered person](/usc/12/5481.md?p=6);
    - (B) the volume of transactions involving [consumer](/usc/12/5481.md?p=4) financial products or services in which the [covered person](/usc/12/5481.md?p=6) engages;
    - (C) the risks to [consumers](/usc/12/5481.md?p=4) created by the provision of such [consumer](/usc/12/5481.md?p=4) financial products or services;
    - (D) the extent to which such institutions are subject to oversight by [State](/usc/12/5301.md?p=16) authorities for [consumer](/usc/12/5481.md?p=4) protection; and
    - (E) any other factors that the [Bureau](/usc/12/5301.md?p=4) determines to be relevant to a class of [covered persons](/usc/12/5481.md?p=6).
  - (3) **Coordination—** To minimize regulatory burden, the [Bureau](/usc/12/5301.md?p=4) shall coordinate its supervisory activities with the supervisory activities conducted by [prudential regulators](/usc/12/5481.md?p=24), the [State bank](/usc/12/5301.md?p=18-A) regulatory authorities, and the [State](/usc/12/5301.md?p=16) agencies that licence, supervise, or examine the offering of [consumer](/usc/12/5481.md?p=4) financial products or services, [including](/usc/12/5301.md?p=18-A) establishing their respective schedules for examining [persons](/usc/12/5481.md?p=19) described in [subsection (a)(1)](#a-1) and requirements regarding reports to be submitted by such [persons](/usc/12/5481.md?p=19). The sharing of information with such regulators, authorities, and agencies shall not be construed as waiving, destroying, or otherwise affecting any privilege or confidentiality such [person](/usc/12/5481.md?p=19) may [claim](/usc/12/5381.md?p=a-4) with respect to such information under Federal or [State](/usc/12/5301.md?p=16) law as to any [person](/usc/12/5481.md?p=19) or entity other than such [Bureau](/usc/12/5301.md?p=4), agency, supervisor, or authority.
  - (4) **Use of existing reports—** The [Bureau](/usc/12/5301.md?p=4) shall, to the fullest extent possible, use—
    - (A) reports pertaining to [persons](/usc/12/5481.md?p=19) described in [subsection (a)(1)](#a-1) that have been provided or required to have been provided to a Federal or [State](/usc/12/5301.md?p=16) agency; and
    - (B) information that has been reported publicly.
  - (5) **Preservation of authority—** Nothing in this title[^1] may be construed as limiting the authority of the [Director](/usc/12/5341.md?p=1) to require reports from [persons](/usc/12/5481.md?p=19) described in [subsection (a)(1)](#a-1), as permitted under [paragraph (1)](#b-1), regarding information owned or under the [control](/usc/12/5301.md?p=18-A) of such [person](/usc/12/5481.md?p=19), regardless of whether such information is maintained, stored, or processed by another [person](/usc/12/5481.md?p=19).
  - (6) **Reports of tax law noncompliance—** The [Bureau](/usc/12/5301.md?p=4) shall provide the Commissioner of Internal Revenue with any report of examination or related information identifying possible tax law noncompliance.
  - (7) **Registration, recordkeeping and other requirements for certain persons—**
    - (A) **In general—** The [Bureau](/usc/12/5301.md?p=4) shall prescribe rules to facilitate supervision of [persons](/usc/12/5481.md?p=19) described in [subsection (a)(1)](#a-1) and assessment and detection of risks to [consumers](/usc/12/5481.md?p=4).
    - (B) **Recordkeeping—** The [Bureau](/usc/12/5301.md?p=4) may require a [person](/usc/12/5481.md?p=19) described in [subsection (a)(1)](#a-1), to generate, provide, or retain records for the purposes of facilitating supervision of such [persons](/usc/12/5481.md?p=19) and assessing and detecting risks to [consumers](/usc/12/5481.md?p=4).
    - (C) **Requirements concerning obligations—** The [Bureau](/usc/12/5301.md?p=4) may prescribe rules regarding a [person](/usc/12/5481.md?p=19) described in [subsection (a)(1)](#a-1), to ensure that such [persons](/usc/12/5481.md?p=19) are legitimate entities and are able to perform their obligations to [consumers](/usc/12/5481.md?p=4). Such requirements may include background checks for principals, officers, [directors](/usc/12/5341.md?p=1), or key personnel and bonding or other appropriate financial requirements.
    - (D) **Consultation with State agencies—** In developing and implementing requirements under this paragraph, the [Bureau](/usc/12/5301.md?p=4) shall consult with [State](/usc/12/5301.md?p=16) agencies regarding requirements or systems ([including](/usc/12/5301.md?p=18-A) coordinated or combined systems for registration), where appropriate.
- (c) **Enforcement authority—**
  - (1) **The Bureau to have enforcement authority—** Except as provided in [paragraph (3)](#c-3) and [section 5581 of this title](/usc/12/5581.md), with respect to any [person](/usc/12/5481.md?p=19) described in [subsection (a)(1)](#a-1), to the extent that Federal law authorizes the [Bureau](/usc/12/5301.md?p=4) and another Federal agency to enforce [Federal consumer financial law](/usc/12/5481.md?p=14), the [Bureau](/usc/12/5301.md?p=4) shall have exclusive authority to enforce that [Federal consumer financial law](/usc/12/5481.md?p=14).
  - (2) **Referral—** Any Federal agency authorized to enforce a [Federal consumer financial law](/usc/12/5481.md?p=14) described in [paragraph (1)](#c-1) may recommend in writing to the [Bureau](/usc/12/5301.md?p=4) that the [Bureau](/usc/12/5301.md?p=4) initiate an enforcement proceeding, as the [Bureau](/usc/12/5301.md?p=4) is authorized by that Federal law or by this title.[^1]
  - (3) **Coordination with the Federal Trade Commission—**
    - (A) **In general—** The [Bureau](/usc/12/5301.md?p=4) and the Federal Trade [Commission](/usc/12/5301.md?p=5) shall negotiate an agreement for coordinating with respect to enforcement actions by each agency regarding the offering or provision of [consumer](/usc/12/5481.md?p=4) financial products or services by any [covered person](/usc/12/5481.md?p=6) that is described in [subsection (a)(1)](#a-1), or [service providers](/usc/12/5481.md?p=26-A) thereto. The agreement shall include procedures for notice to the other agency, where feasible, prior to initiating a civil action to enforce any Federal law regarding the offering or provision of [consumer](/usc/12/5481.md?p=4) financial products or services.
    - (B) **Civil actions—** Whenever a civil action has been filed by, or on behalf of, the [Bureau](/usc/12/5301.md?p=4) or the Federal Trade [Commission](/usc/12/5301.md?p=5) for any [violation](/usc/12/5561.md?p=5) of any provision of Federal law described in [subparagraph (A)](#c-3-A), or any regulation prescribed under such provision of law—
      - (i) the other agency may not, during the pendency of that action, institute a civil action under such provision of law against any defendant named in the complaint in such pending action for any [violation](/usc/12/5561.md?p=5) alleged in the complaint; and
      - (ii) the [Bureau](/usc/12/5301.md?p=4) or the Federal Trade [Commission](/usc/12/5301.md?p=5) may intervene as a party in any such action brought by the other agency, and, upon intervening—
        - (I) be heard on all matters arising in such enforcement action; and
        - (II) file petitions for appeal in such actions.
    - (C) **Agreement terms—** The terms of any agreement negotiated under [subparagraph (A)](#c-3-A) may modify or supersede the provisions of [subparagraph (B)](#c-3-B).
    - (D) **Deadline—** The agencies shall reach the agreement required under [subparagraph (A)](#c-3-A) not later than 6 months after the [designated transfer date](/usc/12/5481.md?p=9).
- (d) **Exclusive rulemaking and examination authority—** Notwithstanding any other provision of Federal law and except as provided in [section 5581 of this title](/usc/12/5581.md), to the extent that Federal law authorizes the [Bureau](/usc/12/5301.md?p=4) and another Federal agency to issue regulations or guidance, conduct examinations, or require reports from a [person](/usc/12/5481.md?p=19) described in [subsection (a)(1)](#a-1) under such law for purposes of assuring compliance with [Federal consumer financial law](/usc/12/5481.md?p=14) and any regulations thereunder, the [Bureau](/usc/12/5301.md?p=4) shall have the exclusive authority to prescribe rules, issue guidance, conduct examinations, require reports, or issue exemptions with regard to a [person](/usc/12/5481.md?p=19) described in [subsection (a)(1)](#a-1), subject to those provisions of law.
- (e) **Service providers—** A [service provider](/usc/12/5481.md?p=26-A) to a [person](/usc/12/5481.md?p=19) described in [subsection (a)(1)](#a-1) shall be subject to the authority of the [Bureau](/usc/12/5301.md?p=4) under this section, to the same extent as if such [service provider](/usc/12/5481.md?p=26-A) were engaged in a service relationship with a [bank](/usc/12/5301.md?p=18-A), and the [Bureau](/usc/12/5301.md?p=4) were an [appropriate Federal banking agency](/usc/12/5301.md?p=2) under [section 1867(c) of this title](/usc/12/1867.md?p=c). In conducting any examination or requiring any report from a [service provider](/usc/12/5481.md?p=26-A) subject to this subsection, the [Bureau](/usc/12/5301.md?p=4) shall coordinate with the appropriate [prudential regulator](/usc/12/5481.md?p=24), as applicable.
- (f) **Preservation of Farm Credit Administration authority—** No provision of this title[^1] may be construed as modifying, limiting, or otherwise affecting the authority of the Farm [Credit](/usc/12/5481.md?p=7) Administration.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 111–203, title X, § 1024, July 21, 2010, 124 Stat. 1987; Pub. L. 113–173, § 2, Sept. 26, 2014, 128 Stat. 1899.)

## Notes

### Editorial Notes

### References in Text

This title, where footnoted in subsecs. (a)(1), (b)(5), (c)(2), and (f), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protection Act of 2010, which enacted this subchapter and enacted, amended, and repealed numerous other sections and notes in the Code. For complete classification of title X to the Code, see Short Title note set out under section 5301 of this title and Tables.

### Amendments

2014—Subsec. (b)(3). Pub. L. 113–173 substituted “regulators, the State bank regulatory authorities, and the State agencies that licence, supervise, or examine the offering of consumer financial products or services” for “regulators and the State bank regulatory authorities” and inserted at end “The sharing of information with such regulators, authorities, and agencies shall not be construed as waiving, destroying, or otherwise affecting any privilege or confidentiality such person may claim with respect to such information under Federal or State law as to any person or entity other than such Bureau, agency, supervisor, or authority.”

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective July 21, 2010, see section 1029A of Pub. L. 111–203, set out as a note under section 5511 of this title.