The CFPB cancels several regulatory policies
The Consumer Financial Protection Bureau (CFPB) rescinded seven policy statements released last year that offered temporary flexibilities to financial institutions in consumer financial markets. As of April 1, statements provide guidance on meeting their legal and regulatory obligations.
The rescinded policy statements temporarily provided financial institutions with flexibilities regarding regulatory filings or compliance with consumer financial laws and regulations.
With the cancellations, the CFPB announces its intention to exercise its supervisory and enforcement authority under the Dodd-Frank Act. The CFPB is also revoking its 2018 bulletin on supervisory communications and replacing it with a revised bulletin.
“We are now over a year into the disruptive and deadly COVID-19 crisis. The virus has affected industry as well as consumers, but individuals and families have been hit hardest by the health and economic impacts of the pandemic, ”said Dave Uejio, acting director of CFPB. “Providing regulatory flexibility to businesses should not come at the expense of consumers. As many financial institutions have developed more robust remote capabilities and demonstrated improved operations, it is no longer prudent to maintain these flexibilities. Protecting consumers from harm is the first priority of the CFPB, today and always.
Rescinded policy statements include:
- Statement on Office Oversight and Law Enforcement Response to the COVID-19 Pandemic (originally published March 26, 2020): The resolution withdraws the CFPB as a signatory of the Interagency statement on loan modifications and reporting for financial institutions working with clients affected by coronavirus (April 7, 2020) and Interagency Statement on Valuations and Valuations of Real Estate Financial Transactions Affected by Coronavirus (April 14, 2020).
- Statement on Monitoring and Enforcement Practices Regarding Quarterly Reporting Under the Home Mortgage Disclosure Act (originally posted March 26, 2020): Cancellation orders all financial institutions required to file quarterly to do so from their Q1 2021 data, due by May 31, 2021, for all loans covered and requests with a final action taken between January 1 and March 31, 2021.
- Statement on Supervisory and Enforcement Practices Regarding CFPB Information Collection for Credit Card and Prepaid Account Issuers (originally published March 26, 2020): The cancellation provides guidance on how entities should now meet specified information collection requirements for credit cards and prepaid accounts.
- Statement on Monitoring and Enforcement Practices Regarding the Fair Credit Reporting Act and Regulation V in Light of the CARES Act (originally published April 1, 2020): The termination leaves intact the section titled “Providing Information to Consumers Affected by COVID-19” which expresses CFPB’s support for voluntary efforts by providers to provide payment relief and that CFPB no It does not intend to cite in reviews or take coercive action against those who provide information to consumer news agencies that accurately reflects the payment relief measures they use.
- Statement of Oversight and Enforcement Practices Regarding Certain Filing Requirements Under the Interstate Land Sales Full Disclosure Act (ILSA) and Regulation J (initially published on April 27, 2020): The cancellation instructs land developers subject to ILSA and Regulation J to resume filing annual activity reports and financial statements as specified in Regulation J.
- Statement on Monitoring and Enforcement Practices Regarding Regulatory Z Billing Error Resolution Times in Light of the COVID-19 Pandemic (originally published May 13, 2020)
- Statement on Monitoring and Enforcement Practices Regarding Electronic Credit Card Disclosures in Light of the COVID-19 Pandemic (originally published June 3, 2020)
- Bulletin 2018-01: Changes to types of supervisory communications: The canceled bulletin is replaced by bulletin 2021-01 announcing changes in the way CFPB examiners articulate supervision expectations. The new bulletin states that the CFPB will continue to rely on matters requiring special attention (ARM), explains the circumstances under which it will do so and announces that the CFPB will cease using the monitoring recommendations.