CFPB Updates Process for Supervisory Appeals

The CFPB issued an updated process for appealing supervisory determinations, such as adverse exam findings and compliance ratings.

The CFPB encourages regulated entities to discuss any concerns or disagreements about the agency’s preliminary findings with their examiners during the examination and to provide at that time any evidence or information they believe is necessary to clear the record.  After the completion of an examination or targeted review, CFPB procedures also allow regulated entities to formally appeal compliance ratings or material adverse findings.

The changes to the CFPB’s existing supervisory appeal procedures include:

• The three-person appeal panel may include any CFPB managers who did not participate in the underlying matter being appealed and who have relevant expertise on the subject matter of the appeal.  Prior rules required that the appeal panel only include managers from the Office of Supervision.

• Previously, the possible appeal outcomes were either upholding or rescinding the finding at issue.  The new rules also allow the appeal panel to remand the issue to supervisory staff to consider a modified finding.

• Entities may now file an appeal of any compliance numerical rating (i.e., they may even appeal higher ratings), and not only lower, adverse ratings.