On 11 July 2014, the Consumer Financial Protection Bureau (“CFPB”) issued guidance for mortgage brokers transitioning to a “mini-correspondent” lender model. The guidance addresses the CFPB concern that some mortgage brokers may be shifting to the mini-correspondent model under the belief that such model would automatically exempt them from consumer protection rules affecting broker compensation. Under the guidance, the CFTC sets out some of the questions the CFPB uses to evaluate mortgage transactions involving

mini-correspondent lenders including examination into how the mini-correspondent lender is structured and operating. However, the guidance makes clear that no single question is determinative of how the CFPB may characterize a particular mortgage transaction.

The full text of the CFPB guidance is available at:

http://www.consumerfinance.gov/f/201407_cfpb_guidance_mini-correspondent- lenders.pdf.