CFPB Requests Information on Inherited Regulations

When the CFPB first inherited a number of regulations from the Federal Reserve over six years ago, they vowed to revisit those regulations.  

Eventually.  

Well, earlier today, the CFPB finally requested feedback regarding their inherited regulations as well as their inherited rulemaking authorities.

Overview of the Request for Information

In their request found here, the CFPB is asking for comments and other information from “interested parties” to assist the Bureau in deciding whether it should amend those regulations and whether it should exercise the rulemaking authorities that it inherited from other federal government agencies.  This request for information will provide an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities.

This request really doesn’t come as a surprise as it is the ninth request in a series of Request for Information that Acting Director Mick Mulvaney has called for, in order to ensure that the CFPB is fulfilling its function to best protect consumers.

Comment Topics for Inherited Regulations

The CFPB has clarified that the term “Inherited Regualtions”  include all regulations that were transferred to the Bureau by title X of the Dodd-Frank Act and also includes all rulemaking authority inherited by the Bureau, regardless of the extent to which the Bureau’s predecessors exercised that authority.        

To allow the Bureau to more effectively evaluate suggestions, the Bureau requests that, where possible, comments include:                                              

• Specific suggestions regarding any potential updates or modifications to the Inherited Regulations, consistent with the laws providing the Bureau with rulemaking authority and the Bureau’s regulatory and statutory purposes and objectives, and including, in as much detail as possible, the nature of the requested change, and supporting data or other information on impacts and costs of the Inherited Regulations and on the suggested changes thereto; and                                             

• Specific identification of any aspects of the Inherited Regulations that should not be modified, consistent with the laws providing the Bureau with rulemaking authority and the Bureau’s regulatory and statutory purposes and objectives, and including, in as much detail as possible, supporting data or other information on impacts and costs, or information related to consumer and public benefit resulting from these rules.                      

Even more specifically, the Bureau is seeking feedback on all aspects of the Inherited Regulations, including but not limited to:             

1. Aspects of the Inherited Regulations that:

   1. Should be tailored to particular types of institutions or to institutions of a particular size:

   2. Create unintended consequences;

   3. Overlap or conflict with other laws or regulations in a way that makes it difficult or particularly burdensome for institutions to comply;

   4. Are incompatible or misaligned with new technologies, including by limiting providers’ ability to deliver, electronically, mandatory disclosures or other information that may be relevant to consumers; or

   5. Could be modified to provide consumers greater protection from the incidence and effects of identity theft.

2. Changes the Bureau could make to the Inherited Regulations, consistent with its statutory authority, to more effectively meet the statutory purposes and objectives set forth in the Federal consumer financial laws, as well as the Bureau’s predecessor agencies’ specific goals for the particular Inherited Regulation in the first instance.

3. Changes the Bureau could make to the Inherited Regulations, consistent with its statutory authority, that would advance the following statutory purposes and objectives as set forth in section 1021 of the Dodd-Frank Act:

   1. The statutory purposes set forth in section 1021(a) are:

      1. All consumers have access to markets for consumer financial products and services; and

      2. Markets for consumer financial products and services are fair, transparent, and competitive.

   2. The statutory objectives set forth in section 1021(b) are:

      1. Consumers are provided with timely and understandable information to make responsible decisions about financial transactions;

      2. Consumers are protected from unfair, deceptive, or abusive acts and practices and from discrimination;

      3. Outdated, unnecessary, or unduly burdensome regulations are regularly identified and addressed in order to reduce unwarranted regulatory burdens;

      4. Federal consumer financial law is enforced consistently in order to promote fair competition; and

      5. Markets for consumer financial products and services operate transparently and efficiently to facilitate access and innovation.

4. Pilots, field tests, demonstrations, or other activities that the Bureau could launch to better quantify benefits and costs of potential revisions to the Inherited Regulations, or make compliance with the Inherited Regulations more efficient and effective.    

5. Areas where the Bureau has inherited rulemaking authority, but has not exercised it, where rulemaking would be beneficial and align with the purposes and objectives of the applicable Federal consumer financial laws.

Submitting Comments

Once the RFI is printed in the Federal Register (meaning it is official), the comment period will be open for 90 days.  As the RFI is expected to be printed in the Federal Register on March 26, it appears that the comment period will end around June 24, 2018.

While there are four ways to submit comments, the two easiest ways are as follows:

1. Electronic: Go to http://www.regualtions.gov and follow the instructions for submitting comments.

2. Email: Send your comment to federalregistercomments@cfpb.gov and include “Docket No. CFPB-2018-0012” in the subject line of the message.

The Bureau encourages early submission of comments and requires the comment letter to be identified by including “Docket No. CFPB-2018-0012” in the letter.

Thanks for reading this article.  If you haven't done so already, make sure you check out our Compliance Clips - free 3-5 minute training videos on all topics of regulatory compliance.