The CFPB has published its Fall 2020 Regulatory Agenda As part of the Unified Federal Regulatory and Deregulatory Action Program Fall 2020. It represents CFPB’s fourth regulatory program under the leadership of Director Kraninger. The preamble to the agenda indicates that the information in the agenda is current as of September 11, 2020 and identifies regulatory matters that the Bureau “reasonably expects to have under consideration during the period. from November 2020 to November 2021 ”.
The Bureau published its final rule of debt collection in October 2020. In February 2020, the Bureau issued an additional proposal this would require debt collectors to make specified disclosures when collecting prescribed debts. The Bureau indicates in the preamble that it intends to finalize this month its additional proposal concerning the disclosures by prescribed dates.
Other items on the agenda that the CFPB expects to take action on before the end of this year and next include:
- Data on business loans (Regulation B). Section 1071 amended CEAA, subject to rules adopted by the Bureau, to require financial institutions to collect and report certain data relating to credit applications made by women-owned businesses and small businesses. or to minorities. Office published an SBREFA preview in September 2020 and convened an SBREFA panel in October 2020. The Bureau published the panel report today.
- Clean energy financing valued by property. In March 2019, the CFPB issued an advance notice of proposed regulations extend the repayment capacity requirements of the Truth in Lending Act to PACE transactions. The agenda provides for pre-regulatory activity in March 2021.
- Home Mortgage Disclosure Act (Regulation C). The HMDA Amendments adopted by the CFPB in October 2015 revised some pre-existing data points, added data points set out in Dodd-Frank, and included additional data points based on Dodd-Frank’s discretion allowing the CFPB to require communication of other information. . The October 2015 changes also broadened the scope of reportable loans by requiring the reporting of commercial or commercial loans secured by housing that meet the definition of a home purchase, refinancing or renovation transaction. In May 2019, the Bureau issued an advance notice of proposed regulations solicit feedback on the advisability of making changes to revised or new data points, and coverage of commercial or commercial loans that are made to a non-natural person and secured by a multi-family dwelling. The agenda provides for the publication of a notice of regulatory proposal in February 2021.
- Public release of Home Mortgage Disclosure Act data. In December 2018, the CFPB announced final political orientation regarding application-level HMDA data that will be made available to the public. The agenda includes the publication of a notice of proposed regulation on the public disclosure of HMDA data in February 2021.
- Amendments to FIRREA regarding assessments (automated assessment models). The Office participates in the development of interagency rules with the Federal Reserve, OCC, FDIC, NCUA and FHFA to develop regulations to implement the changes made by the Dodd-Frank Act to the 1989 Act on the reform, recovery and enforcement of financial institutions (FIRREA) regarding appraisals. The FIRREA amendments require implementing regulations for quality control standards for automated assessment models. The agenda calls for the agencies to publish a notice of regulatory proposal in June 2021.
- Mortgage loan management rules. The Bureau plans to propose additional changes to the service rules, including, for example, loss mitigation provisions and expects its proposal to be released in March 2021.
- Higher Priced Mortgage Escrow Exemption. The Economic Growth, Regulatory Relaxation and Consumer Protection Act directs the CFPB to implement an exemption from the mandatory escrow account requirement for higher priced mortgages under the Loan Truth and Regulation Z for Certain Insured Credit Unions and Depository Institutions. CFPB proposed amendments to regulation Z in accordance with this directive. The Bureau estimates that it will issue a final rule in January 2021.
Items on the Bureau’s long-term regulatory agenda, which do not have an estimated date for further action, include:
- Abusive acts and practices. In January 2020, the CFPB issued a policy statement to clarify the abuse standard of the Dodd-Frank Act. The Bureau says it recognizes the importance of continuing to monitor the use of AI and machine learning and assesses “whether it’s rule-making, a policy statement or another action of the Bureau. The agenda states that in issuing the policy statement, “the Bureau has not ruled out the possibility of engaging in future regulation to further define the standard of abuse.
- Artificial intelligence. In February 2017, the CFPB issued a information request regarding the use of alternative data and modeling techniques in the credit process. Bureau says it recognizes the importance of continuing to monitor the use of AI and machine learning and assesses “whether rule making, a policy statement or other Bureau action may become appropriate. “.
- Payday Disclosure Rule. The Bureau declares that he started research focused on informing consumers about the costs associated with payday loans. The Bureau expects to complete the first phase of this research, which includes qualitative testing, by the end of September 2021. The test results will allow the Bureau to decide whether to go ahead with quantitative tests that could support future regulations or other measures related to payday loan disclosures.
- Indemnification of the principal. The Bureau says it has received comments that some aspects of its current rule “may be unnecessarily restrictive” and is considering rule development to address these concerns. Possible topics for consideration could include whether creditors can reduce compensation for public housing finance authority loans and whether creditors can reduce compensation due to originator error. .
Other long-term elements include the application of electronic signature law requirements in the context of certain Office regulations and possible changes to the Office’s TILA / RESPA integrated disclosure rule.
The decision of the Supreme Court of the United States in Seila Law that the provision in the Dodd-Frank Act allowing the President to remove the Director of the Bureau only “for cause” is unconstitutional and that the appropriate remedy is to break this provision means that President-elect Biden will be able to remove Director Kraninger without cause . Therefore, the Bureau’s spring 2021 rulemaking agenda may reflect a significant shift in priorities.
