The newly created federal consumer watchdog, the Consumer Financial Protection Bureau, has reached an agreement that will give the group joint oversight over states’ lending industries, according to Dealbook. The CFPB is being led by Elizabeth Warren, who announced on Tuesday that the watchdog would join up with the Conference of State Banking Supervisors to regulate payday lenders, student loan providers, and mortgage companies.
The move could be the first of a series of arrangements with various state regulators, and Warren said the agreement is “an alliance to protect American families.” Warren said the partnership “allows us to bring thousands of financial service providers out of the shadows and to begin the process of ensuring that all lenders comply with the same basic rules. Groups for lenders and consumer advocates alike welcomed the measure. The CFPB was created as part of the Dodd-Frank financial overhaul law in July.