CFPB, Federal Agencies, State Agencies, and Attorneys General
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 CFPB announced earlier this week that it has established a “framework” with the Conference of State Bank Supervisors (CSBS) for coordination among the CFPB and state regulators on supervision and enforcement matters. The framework states that it is “intended to establish a process for coordinated federal/state consumer protection supervision and enforcement of entities providing consumer products or services that are subject to concurrent jurisdiction of the CFPB and one or more [state financial regulatory authorities].” … Continue Reading
The George Mason University School of Law, Law & Economics Center recently hosted a conference titled “Understanding the Consumer Financial Protection Bureau,” through GMU’s Attorneys General Education Program. Founded in 2009, the program was created to provide economic and public policy educational programming to state attorneys general and their staff attorneys from across the country. … Continue Reading
The CFPB has issued a proposal to supervise nonbank student loan servicers who qualify as “larger participants” in the student loan servicing market. The CFPB already supervises student loan servicing by larger banks. It also already supervises, without regard to their size, nonbanks that offer or provide private student loans and student loan servicing by such nonbanks. … Continue Reading
The CFPB is reorganizing its headquarters staff for supervision so it will no longer be divided into separate offices for nonbank and large bank supervision. While there will continue to be two offices, one office will now be focused on exams and the other will be focused on policy.
The exam office will oversee the CFPB’s efforts to: “recruit, train, and commission examiners; ensure policies and procedures are followed; and plan and execute examinations appropriately in light of [the CFPB’s] resources and priorities.” … Continue Reading
I regularly work with technology innovators to help them get their ideas cleaned up for financial institutions and to give them a headstart in understanding the types of risk concerns and controls that financial institutions are going to have and want. To technology innovators who may be intrigued by the CFPB’s request for dialogue, I wanted to provide my thoughts on some steps to take before charging through the Project Catalyst doors and throwing your ideas in front of the CFPB.… Continue Reading
On June 4, the CFPB, jointly with the Fed, FDIC, NCUA and OCC, announced that the agencies were releasing a “Memorandum of Understanding on Supervisory Coordination” (MOU). The MOU was signed by the CFPB on May 3 and by the other agencies on various dates in May, with the Fed and NCUA signing last on May 16. … Continue Reading
Today, the CFPB proposed a rule setting up procedures for supervising non-banks that the CFPB believes are engaging in, or may have engaged in, activities that pose risks to consumers. Under the Dodd-Frank Act, the CFPB has authority to supervise any nonbank that it has reasonable cause to determine is engaging in, or has engaged, in conduct that poses risks to consumers with regard to the offering or provision of consumer financial products or services based on complaints and any other information it receives.… Continue Reading
On April 13, 2012, the Consumer Financial Protection Bureau (CFPB) released Bulletin 2012-03, which stated that the CFPB will expand its examination scope beyond supervised institutions themselves and examine their service providers as well. If the CFPB believes that service providers are not complying with a consumer financial services law, or are committing a UDAAP violation when interacting with the supervised institution’s customers, the CFPB plans to hold both companies accountable.… Continue Reading
