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Consumer Financial Protection Bureau Shared Regulatory Program

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Last week, the Consumer Financial Protection Bureau (CFPB) quietly released its Spring Regulatory Agenda, which sets out five rules that the CFPB expects to complete by May 31, 2023. Unlike in the past, the CFPB has no not issued a press release or publication. the agenda on its website. As required by law, the CFPB submitted the agenda to the Office of Budget and Management, which then published it.

The five rules are:

  • A rule implementing Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which requires a covered entity (such as a bank) to update the provision to consumers upon their request of transaction data and other information regarding a consumer financial product or service that they have obtained from the covered entity. The CFPB issued a Notice of Proposed Rulemaking in November 2020 regarding the implementation of Section 1033 and seeking comment.

  • An interagency rule (with other federal bank agencies) to implement a Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) amendment under the Dodd-Frank Act regarding Automated Valuation Models (AVMs) ). The FIRREA amendment requires implementing regulations for AVM quality control standards. These standards are designed to ensure a high level of confidence in the estimates produced by AVMs, to protect against data manipulation, to avoid conflicts of interest, to require random sample testing and examinations, and to take into account any other factors as the agencies deem appropriate. .

  • A rule to implement section 1071 of the Dodd-Frank Act relating to the collection of data for loans owned by women, minorities and small businesses under the Equal Employment Opportunity Act credit. The CFPB published a regulatory proposal to implement Section 1071 in October 2021. This regulation is being watched very closely by the financial services industry and has been the subject of much discussion. The CFPB’s next action is the publication of the final rule, which it plans to publish by March 2023.

  • A rule implementing a provision of the National Defense Authorization Act, which was enacted in December 2021, which amended the Fair Credit Reporting Act to prohibit consumer reporting agencies from providing a consumer report containing any adverse information about a consumer resulting from a serious form of human trafficking or sex trafficking if these documents were provided to the consumer reporting agency.

  • A rule to implement Section 307 of the Economic Growth, Regulatory Relief and Consumer Protection Act, which amended the Truth in Lending Act (TILA) to require the CFPB to prescribe Property Assessed Clean Energy (PACE) financing regulations. As defined in Section 307, PACE financing results in a tax assessment on a consumer’s real estate and covers the costs of home improvements. Required regulations must achieve the objectives of TILA’s Repayment Capacity Requirements (ATRs), currently in place for residential mortgages, with respect to PACE funding and enforce TILA’s general liability provision for breaches of the requirements. ATR that the CFPB will prescribe for the financing of PACE.

In a June 17 blog post titled “Rethinking the Approach to Regulation,” CFPB Director Rohit Chopra noted that, among other actions, the CFPB is reviewing a slew of rules issued over the past the previous decade that have been “tested in the market for many years”. years old and need a new look,” and specifically refers to the qualified mortgage rule. The CFPB’s regulatory program did not include any reference to any regulation associated with the qualified mortgage rule amendment.

© 2022 Jones Walker LLPNational Law Review, Volume XII, Number 181