MS Adopts CSBS Prudential Standards for Nonbank Mortgage Servicers, Implements Disclosure for Licensees with Dual Roles, and Adopts Annual Certification Form for Remote Work Safeguards

Mississippi has joined 12 other states, as its Commissioner of Banking and Consumer Finance adopts the Conference of State Bank Supervisors (CSBS) Model State Regulatory Prudential Standards for Nonbank Mortgage Servicers.  As previously reported, the Standards establish requirements for capital, liquidity, and corporate governance for nonbank mortgage servicers.

The new rules also expand recordkeeping requirements to incorporate, among other things, the Loan Estimate, Closing Disclosure and Ability-to-Repay documentation, which state law now provides must now be retained for 5 years (instead of 36 months).  Lastly, the Department of Banking and Consumer Finance adopted two new forms: (1) A licensee acting in a dual capacity must disclose the dual relationship using the Disclosure of Multiple Roles in a Consumer Real Estate Transaction form, (2) Licensees with remote MLOs must certify annually on the Certification of Safeguarding Standards for Mortgage Loan Originators form that remote locations meet the standards and safeguards for protecting customer information enacted in prior legislation, which we previously covered here.

The rules become effective on May 26, 2026.