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WBK Industry - Federal Regulatory Developments

CFPB Issues Requests for Information Regarding Its Enforcement and Supervision Processes

22 Feb 2018

The CFPB has issued two Requests for Information, seeking public comment on its enforcement and supervision processes.  The Requests for Information are part of a larger call for feedback on the effectiveness of several aspects of CFPB processes and procedures, announced in January.  The CFPB has already issued Requests for Information regarding civil investigative demands (CIDs) and administrative adjudications.

With respect to enforcement, while emphasizing that it seeks feedback on every aspect of its enforcement process, the CFPB created a list of areas of its enforcement process that may be of more immediate importance.  The CFPB asked for feedback specifically regarding the following topics:

  • Communication between the CFPB and the subjects of its investigations;
  • The length of investigations;
  • The Notice and Opportunity to Respond and Advise (NORA) process;
  • Whether the CFPB should allow subjects of potential enforcement actions to make an in-person presentation to the CFPB before the CFPB determines whether it will initiate legal proceedings;
  • The calculation of civil money penalties;
  • Standard provisions in consent orders; and
  • Whether and to what extent the CFPB can and should coordinate its enforcement activity with other federal or state agencies.

With respect to supervision, the CFPB also requested feedback on all aspects of its process, but specifically with respect to the following topics:

  • The timing, frequency, and scope of supervisory exams;
  • The collection of information and documents from a supervised entity prior to starting an exam;
  • The type and volume of information and documents requested;
  • The effectiveness of the CFPB Supervision and Examination Manual;
  • The effectiveness of onsite exam work;
  • The effectiveness of communications when potential violations are identified, including the potential action and request for response (PARR) letter;
  • The clarity and quality of communications which report the results of supervisory activities (e.g., examiner oral communications, Supervisory Letters and Examination Reports);
  • The clarity of Matters Requiring Attention (MRAs), and their timing requirements;
  • The process for appeal of supervisory findings;
  • Supervised entities’ use of third parties to conduct assessments specified in MRAs and to assess sufficiency of completion of an MRA;
  • The usefulness of the CFPB’s publication of Supervisory Highlights; and
  • The manner and extent to which the CFPB can and should coordinate its supervisory activity with federal and state supervisory agencies.

The Request for Information regarding CFPB enforcement was published in the Federal Register on February 12, 2018, and is available here:  https://www.gpo.gov/fdsys/pkg/FR-2018-02-12/pdf/2018-02710.pdf. Comments must be received by April 13, 2018.

The Request for Information regarding CFPB supervision was published in the Federal Register on February 20, 2018, and is available here:  https://www.gpo.gov/fdsys/pkg/FR-2018-02-20/pdf/2018-03358.pdf. Comments must be received by May 21, 2018.