BIS Review 91/2009  5  compliance with federal consumer protection laws. We believe, therefore, that it is appropriate for Congress to consider, as part of regulatory reform, a strengthened supervisory and enforcement scheme, in partnership with state regulators and enforcement officials, for closing the regulatory gap with respect to independent nonbank lenders.
Recognizing the critical need to conduct on-site reviews of credit practices of nonbank lenders, the Board, in July 2007, initiated a multiagency partnership to conduct targeted consumer compliance reviews of selected nonbank lenders that had significant subprime mortgage operations.