risk

This week’s podcast episode: CFPB invokes its “dormant authority” to supervise nonbanks that present risks to consumers: What it means for nonbank providers of consumer financial products and services

By Barbara S. Mishkin on May 12, 2022

We first review the scope of the CFPB’s supervisory authority granted by Dodd-Frank and the source of its authority to supervise nonbanks that present risks to consumers. We then discuss how we expect the CFPB to use its risk-based authority, including the types of products it may target and its decision to make public the identities nonbanks. … Continue Reading

OCC report highlights risks arising from innovation and nonbank competition

By Alan S. Kaplinsky on May 24, 2019

Posted in OCC, Regulatory and Enforcement, Technology

The OCC’s Semiannual Risk Perspective report focuses on key issues that pose threats to bank safety and soundness and legal compliance. Among such issues discussed in the Spring 2019 report, which generally reflects bank data as of December 31, 2018, are risks arising from financial innovation and new technologies.

One of the most significant issues discussed in the report involves artificial intelligence and alternative data, with the OCC highlighting the potential fair lending risks arising from these innovations. … Continue Reading

How will the CFPB use its risk-based supervisory authority?

By Barbara S. Mishkin on May 29, 2012

Posted in CFPB Rulemaking, Regulatory and Enforcement

Last week, the CFPB proposed procedures for asserting its supervisory authority over nonbanks engaged in conduct that poses risk to consumers. Under the Dodd-Frank Act, the CFPB has authority to supervise a nonbank, regardless of its size, that the CFPB has reasonable cause to determine “is engaging, or has engaged, in conduct that poses risks to consumers with regard to the offering or provision of consumer financial products or services.”