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  • CFPB releases RFI on external engagements

    Federal Issues

    On February 21, the CFPB released its fifth Request for Information (RFI) in a series seeking feedback on the bureau’s operations. This RFI solicits public comment on how the Bureau can best “conduct future external engagements while continuing to achieve the Bureau’s statutory objectives.” According to the RFI, the Bureau’s “external engagements” are public and non-public meetings, including: field hearings, town halls, roundtables, and meetings of its advisory board and councils. The Bureau is required by the Dodd-Frank Act to have a Consumer Advisory Board.  The Bureau has also chosen to form three advisory councils: the Community Bank Advisory Council, the Credit Union Advisory Council, and the Academic Research Council. 

    The RFI broadly requests feedback on all aspects of these external engagements but also highlights specific topics on which comment is requested, including (i) strategies for seeing feedback from diverse external stakeholders; (ii) information related to the methods, such as town halls and field hearings, the Bureau uses to receive feedback; (iii) the current process for transparency in the details of the events; (iv) strategies for promoting transparency while protecting confidential business information; and (v) other approaches not currently utilized by the Bureau. The RFI is expected to be published in the Federal Register on February 26. Comments will be due 90 days from publication.

    Federal Issues RFI CFPB Succession CFPB

  • CFPB releases RFI on supervision process

    Federal Issues

    On February 14, the CFPB released its fourth Request for Information (RFI) in a series seeking feedback on the Bureau’s operations. While prior RFIs have focused on various aspects of the Bureau’s enforcement process, this RFI solicits public comment on “how best to achieve meaningful burden reduction or other improvement to the processes used by the Bureau to supervise for compliance with Federal consumer financial law.” The RFI broadly requests feedback on all aspects of the supervision process but also highlights specific topics on which comment is requested, including (i) timing, frequency, and scope of examinations; (ii) timing and process of the pre-exam information request, including type and volume of information requested; (iii) effectiveness and accessibility of the CFPB exam manual; (iv) usefulness and content of the potential action and request for response (PARR) letter; (v) clarity and timing requirements associated with matters requiring attention (MRA), as well as the use of third parties to conduct assessments specified in MRAs; (vi) the Bureau’s provision of information about supervisory actions in its Supervisory Highlights publication; and (vii) how the Bureau should coordinate its supervisory activity with federal or state agencies with overlapping jurisdictions. The RFI is expected to be published in the Federal Register on February 20. Comments will be due 90 days from publication.

    Federal Issues CFPB Succession RFI Bank Supervision

  • CFPB releases RFI on enforcement process

    Federal Issues

    On February 7, the CFPB released its third Request for Information (RFI) in a series seeking feedback on the bureau’s operations.  This RFI solicits public comment on “information to help assess the overall efficiency and effectiveness of [the bureau’s] processes related to the enforcement of federal consumer financial law.” The RFI broadly requests feedback on all aspects of the enforcement process but also highlights specific topics on which comment is requested, including (i) timing and frequency of communication from the Bureau during investigations, including information about the status of the investigation; (ii) length of investigations; (iii) the Notice and Opportunity to Respond and Advise (NORA) process, including whether invocation of the NORA should be mandatory and whether the bureau should afford subjects of potential enforcement actions the right to make an in-person presentation to bureau personnel prior to the bureau determining whether to initiate legal proceedings; (iv) civil money penalty (CMP) amounts, including whether the bureau should adopt a CMP matrix; (v) the standard provisions of consent orders; and (vi) how the bureau should coordinate its enforcement activity with federal or state agencies with overlapping jurisdictions. The RFI is expected to be published in the Federal Register on February 12. Comments will be due 60 days from publication.

    InfoBytes coverage of previous RFIs can be found here and here.  

    Federal Issues RFI CFPB CFPB Succession Enforcement

  • FHFA extends deadline to March 30 for credit score input

    Federal Issues

    On February 2, the Federal Housing Finance Agency (FHFA) announced that it is extending the deadline for input on how Fannie Mae and Freddie Mac (the GSEs) should update their current credit score requirements. Interested parties now have until March 30 to respond to the 22 questions outlined in the Request for Input (RFI) issued by FHFA on December 20, 2017. As previously covered by InfoBytes, the RFI sought input on four options for replacement of the Classic FICO credit score model currently used by the GSEs. The four options include (i) requiring the use of either the FICO 9 credit score model or the VantageScore 3.0 credit score model; (ii) requiring the use of both the FICO 9 and the VantageScore 3.0 credit score models; (iii) allowing lenders to choose between either the FICO 9 or the VantageScore 3.0 credit score models; or (iv) allowing lenders to deliver multiple scores through a waterfall approach that would establish a primary and a secondary score.

    Federal Issues Mortgages Fannie Mae Freddie Mac Credit Scores FHFA RFI

  • CFPB releases RFI on administrative adjudications

    Federal Issues

    On January 31, the CFPB released its Request for Information (RFI) on administrative adjudications, which solicits public comment on the process for the Bureau to “better understand the benefits and impacts of its use of administrative adjudications, and how its existing process may be improved.” The RFI broadly requests feedback on “all aspects” of the administrative adjudication process but also highlights specific topics on which comment is requested, including (i) whether the Bureau should abandon the process and pursue contested matters only in federal court; (ii) the policy for proceedings to be conducted expeditiously, including the associated timeframes; (iii) whether the Bureau should make documents available to respondents electronically at its own expense; (iv) whether CFPB staff should be permitted to issue subpoenas without approval of the administrative law judge; (v) limitations on expert witnesses; (vi) limitations on discovery, including deposing fact witnesses or servicing interrogatories; and (vii) whether there should be the opportunity to stay a decision of the director pending appeal by filing a supersedeas bond. The RFI was published in the Federal Register on February 5 and comments are due by April 6. 

    This is the second RFI released related to the CFPB’s plan to publish a series of RFIs seeking input on the way the Bureau is performing its statutory obligations. As previously covered by InfoBytes, the CFPB’s first RFI related to Civil Investigative Demands (CIDs). 

    Federal Issues RFI Enforcement CFPB CFPB Succession

  • CFPB releases RFI on CIDs

    Federal Issues

    On January 25, the CFPB released its Request for Information (RFI) on Civil Investigative Demands (CIDs), which solicits public comment on “how best to achieve meaningful burden reduction or other improvement to the CID processes while continuing to achieve the Bureau’s statutory and regulatory objectives.” The RFI broadly requests feedback on “all aspects” of the CID process but also highlights specific topics on which comment is requested, including (i) the Bureau’s process for initiating investigations and issuing CIDs; (ii) the delegation of authority to officials within the CFPB’s Office of Enforcement; (iii) steps the Bureau could take to improve recipients’ understanding of investigations and the information sought by CIDs; (iv) timeframes and certifications for responses; (v) modifications and objections to CIDs; and (vi) the rights of entities and individuals who are compelled to provide testimony, including the right to have counsel present. 

    As previously covered by InfoBytes, the CFPB announced its plan to publish a series of RFIs seeking public input on the way the Bureau is performing its statutory obligations. The RFI was published in the Federal Register on January 26 and comments are due by March 27.  

    Federal Issues CFPB Succession RFI Enforcement CIDs

  • Fed Seeks Comments on Rating System for SLHCs

    Federal Issues

    On December 13, nearly five and a half years after assuming supervisory responsibility for savings and loan holding companies (SLHCs), the Fed is seeking comments on a proposal to fully apply the same supervisory rating system to savings and loan holding companies as currently applies to bank holding companies—a rating system commonly referred to as the “RFI rating system.” The RFI rating system generally grades a holding company’s risk management (R), financial condition (F), and impact (I) of non-depository entities on subsidiary depository institutions. Although the proposal would fully apply the rating system to most SLHCs supervised by the Fed, it would not apply to SLHCs engaged in significant insurance or commercial activities. These firms would instead continue to receive indicative ratings. Comments on the proposal must be received by Feb. 13, 2017.

    Federal Issues Banking SLHC Bank Holding Companies RFI

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