CFPB, Federal Agencies, State Agencies, and Attorneys General
As previously reported, in June 2024 the CFPB issued a final rule creating a Nonbank Enforcement Order Registry. The rule is effective on September 16, 2024, with registrations available beginning on October 16, 2024 pursuant to a tiered implementation approach.
The CFPB has now released the initial version of a Filing Instructions Guide (FIG) that provides details on how to submit information to the Nonbank Registry Portal (Portal).… Continue Reading
The CFPB issued its final rule, titled the Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders Final Rule, on June 3, 2024. The rule will require certain nonbank entities to register certain covered enforcement or court orders, and comply with ongoing, attested reporting requirements on the entity’s compliance with such orders.… Continue Reading
The South Dakota Division of Banking issued a Memorandum notifying all licensed money lenders and non-residential mortgage lenders of their Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) obligations under a 2020 Final Rule published by the Financial Crimes Enforcement Network (“FinCEN”). The final rule became effective in 2020, and the Memorandum requires licensees to comply by March 31, 2024.… Continue Reading
Delivering the keynote address last week at the Consumer Federation of America’s 2022 Consumer Assembly, CFPB Deputy Director Zixta Martinez indicated that the CFPB “is taking a close look” at “‘rent-a-bank’ schemes.”
Deputy Director Martinez commented that “[s]ome lenders attempt to use [relationships with banks] to evade state interest rate caps and licensing laws by making claims that the bank, rather than the non-bank, is the lender.” … Continue Reading
The CFPB has announced that it plans to invoke its “dormant authority” to supervise nonbanks engaged in conduct that poses risk to consumers. In conjunction with the announcement, the CFPB issued a procedural rule concerning the confidentiality of proceedings in which the CFPB invokes such authority. These moves by the CFPB are notable for two reasons. … Continue Reading
The CFPB has adopted its long-awaited final rule setting forth the procedures it will use to supervise nonbanks engaged in conduct that poses risks to consumers. The final rule will be effective 30 days after its publication in the Federal Register.
We expect the CFPB to quickly begin asserting its risk-based supervisory authority. … Continue Reading
The official launch of the CFPB’s nonbank supervision program was the subject of a blog post by Peggy Twohig, the CFPB’s Associate Director for Nonbank Supervision, and Steve Antonakes, Associate Director for Large Bank Supervision. While much of the post rehashes comments made by Richard Cordray following his recess appointment as Director, a few items strike us as noteworthy.… Continue Reading
