Bruce Rumbold, CCBCO
Manager | Risk Advisory Services
Effective today, the Consumer Financial Protection Bureau (CFPB) rescinded regulatory relief that was granted March through June 2020 mostly around consumer compliance and reporting requirements. Many of the flexibilities were signed into law as a result of the CARES Act.
The first, is the overall flexibility provided surrounding enforcement actions where regulators were allowed to consider regulated entities unique circumstances regarding the effects of the pandemic (staffing / resource constraints) and provide latitude in enforcement given good faith efforts “demonstrably designed” to assist consumers.
The rescission also withdraws the CFPB as a signatory to the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (April 7, 2020) and the Interagency Statement on Appraisals and Evaluations for Real Estate Related Financial Transactions Affected by the Coronavirus (April 14, 2020). This means these flexibilities are now over.
The rescission also:
- instructs all institutions that are required to file HMDA data to do so beginning with their first quarter data, which is due May 31, 2021;
- provides guidance as to how entities should now meet the specified information collections requirements relating to credit card and prepaid accounts;
- leaves intact provisions surrounding furnishers of consumer information. You are still expected to provide reporting consistent with payment relief measures taken on forbearance.
- Includes a statement on enforcement practices regarding billing error disputes under Reg Z.
Lastly, Bulletin 2018-01 has been replaced by Bulletin 2021-01 - Changes to Types of Supervisory Communications.
Basically, the bureau will use Matters Requiring Attention (MRA) communications with or without a related supervisory finding that a supervised entity has violated a Federal consumer financial law. They will no longer use Supervisory Recommendations (SRs) as a communication device.