The CFPB foresees several changes in the regulatory approach | PC Weiner Brodsky Kider
Earlier this month, in a Press releasethe CFPB has announced that its approach to regulation will change to provide more “clear guidelines and basic rules” with the aim of making rules and guidelines less complex, more durable and more consistent.
The agency hopes these changes will reduce compliance costs so that “big market players” have less of an advantage over new entrants and smaller companies in compliance. At the same time, the agency aims to reduce the legal ability of companies to invoke plausible deniability or misunderstandings in the law.
The CFPB is prioritizing the implementation of Congressional directives that include rules for consumer access to their financial records in the small business lending market, as well as the implementation of regulations for quality control standards for automated valuation models under the Dodd-Frank Act.
The CFPB is also considering using previously unused congressional authority, such as the authority to register certain nonbank financial companies to help identify potential scammers and other repeat violations. Additionally, the agency will review and consider changes to long-standing rules the agency has in place, including rules that the CFPB inherited from other agencies. Among other things, the CFPB will review potential changes to the FCRA rules originally developed by the FTC to identify potential improvements and changes in business practices. The CFPB will also review potential changes to the CFPB Eligible Mortgage Rules to help encourage simplified modifications and refinance transactions, and to review the current “seasoning” provisions. The agency also seeks to increase transparency and public input by allowing the public to submit rule-making petitions via email and by accepting requests for future advisory opinions and comments on existing advisory opinions by E-mail.
Finally, in hopes of promoting consistent enforcement, the CFPB plans to launch Consumer Financial Protection Circulars, a new guidance document for several federal, state, and tribal government agencies that enforce federal consumer finance law. The agency accepts comments on potential circular topics via email.