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CFPB Publishes Spring 2023 Regulatory Agenda
Practical Law Legal Update w-039-8442 (Approx. 5 pages)
CFPB Publishes Spring 2023 Regulatory Agenda
by Practical Law Finance
| Published on 21 Jun 2023 • USA (National/Federal) |
The Consumer Financial Protection Bureau (CFPB) published its semi-annual Spring 2023 Regulatory Agenda identifying regulatory matters it reasonably anticipates will be under consideration during the period from June 1, 2023 to May 31, 2024.
As part of federal agencies' issuance of their semi-annual Spring 2023 regulatory agenda, the Consumer Financial Protection Bureau (CFPB) published its semi-annual Regulatory Agenda (agenda) identifying regulatory matters the CFPB reasonably anticipates will be under consideration during the period from June 1, 2023 to May 31, 2024.
Twice a year, the CFPB publishes an agenda of its planned rulemaking activities in accordance with the Regulatory Flexibility Act (5 U.S.C. §§ 601 to 612). According to the agenda's preamble, the CFPB's active agenda is divided among five sections:
- Pre-rule stage (see Pre-Rule Stage).
- Proposed rule stage (see Proposed Rule Stage).
- Final rule stage (see Final Rule Stage).
- Long-term actions.
- Completed actions (see Completed Actions).
Pre-Rule Stage
The agenda lists the following pre-rule stage items:
- Overdraft Fees: considering whether to propose amendments to Regulation Z as they relate to overdraft fees, specifically the special rules for determining whether overdraft fees are considered finance charges.
- Fair Credit Reporting Act Rulemaking: considering whether to amend Regulation V.
- Fees for Insufficient Funds: considering new rules for non-sufficient funds fees.
Proposed Rule Stage
The agenda lists the following proposed rule stage items:
- Amendments to FIRREA Concerning Automated Valuation Models: together with the Board of Governors of the Federal Reserve System (Board), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Federal Housing Finance Agency (collectively, the agencies), developing regulations to implement the amendments made by the Dodd-Frank Act to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 concerning automated valuation models (AVMs). On June 1, 2023, the agencies issued a proposed rule and request for comment on quality control standards for AVMs used in real estate valuations. For more information, see Legal Updates, Federal Agencies Issue Proposed Rule on Quality Control Standards for Automated Valuation Models and CFPB Rulemaking Proposals to Prevent Algorithmic Bias in Home Automated Valuation Models.
- Required Rulemaking on Personal Financial Data Rights: pursuing a rulemaking process on personal financial data rights under Section 1033 of the Dodd-Frank Act that will accelerate the shift to “open banking” in the US. For more information, see Legal Update, CFPB Publishes Outline of Proposals and Alternatives Under Consideration in its Financial Data Rights Rulemaking.
- Property Assessed Clean Energy Financing: issued a proposed rule to implement Section 307 of the Economic Growth, Regulatory Relief, and Consumer Protection Act and make other adjustments to Regulation Z to account for the unique nature of property assessed clean energy financing. For more information, see Legal Update, CFPB Proposes Rule to Establish Consumer Protections for Property Assessed Clean Energy (PACE) Loans.
- Supervision of Larger Participants in Consumer Payment Markets: considering issuing new regulations to further define the scope of the CFPB's nonbank supervision program, with an emphasis on larger participants in markets for consumer payments. The CFPB plans on issuing a Notice of Proposed Rulemaking in July 2023.
Final Rule Stage
The agenda lists the following final rule stage items:
- Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders: a rule that would require certain nonbank covered persons that are under certain final public enforcement orders:
- to register with the CFPB via a public registry that the CFPB would create for such purposes;
- to submit copies of public orders to the same public registry; and
- where certain such persons are supervised by the CFPB, to prepare and submit written statements regarding such orders for use in connection with the CFPB’s supervisory functions.
- Registry of Supervised Nonbank that Use Form Contracts to Impose Terms and Conditions that Seek to Waive or Limit Consumer Legal Protections: a rule that would require certain supervised nonbank entities to register with the CFPB and provide information about their use of certain terms and conditions in standard-form contracts for consumer financial products or services that seek to waive or limit consumer rights or legal protections. The rule would collect information on these standard terms and conditions used in form contracts that are not subject to negotiation and are not prominently advertised in marketing. For more information, see Legal Update, CFPB Proposes Registry of Nonbank Contract Terms and Conditions Limiting Consumer Protections.
- Credit Card Penalty Fees: a rule that would:
- adjust the safe harbor dollar amount for late fees to $8 and eliminate a higher safe harbor dollar amount for late fees for subsequent violations of the same type;
- provide that the current provision that provides for annual inflation adjustments for the safe harbor dollar amounts would not apply to the late fee safe harbor amount; and
- provide that late fee amounts must not exceed 25% of the required payment.
- reflect the enactment of the LIBOR Act and CFPB’s regulation; and
- address the expected discontinuance of LIBOR.
Completed Actions
The CFPB's completed rule agenda lists as a completed action the Small Business Lending Data Collection Rule. On March 30, 2023, the CFPB issued a final rule that requires certain financial institutions to collect, and report to the CFPB, data on small business credit applications as required by Section 1071 of the Dodd-Frank Act. For more information, see Legal Update, CFPB Issues Final Small Business Lending Data Collection Rule.