CFPB News: Semi-Annual Report Released, Taskforce on Federal Consumer Financial Law, and New Associate Director of SEFL

The Consumer Financial Protection Bureau (CFPB) recently made a few announcements that we wanted to highlight for our readers.

On October 8, 2019, the CFPB published on its website its Semi-Annual Report to Congress for the period beginning October 1, 2018 to March 31, 2019.   The report can be accessed at: https://www.consumerfinance.gov/data-research/research-reports/semi-annual-report-spring-2019/.  The report is required under Dodd-Frank Act section 1016, which requires the Director of the CFPB to appear before Congress at semi-annual hearings, and to submit a report that contains information on the CFPB’s activities concurrent with each hearing.  Director Kraninger appeared before the House Financial Services Committee and the Senate Banking Committee on October 16 and 17, 2019, respectively. 

The report contains some notable facts, such as the fact that the CFPB “plans to conduct a symposium on small business loan data collection” in November 2019 in connection with its business loan data collection rulemaking that is mandated under Dodd Frank Act section 1071.  In addition, with respect to fair lending, the report notes that, “during the reporting period, the Bureau did not initiate or complete any fair lending public enforcement actions,” and “did not refer any matters to the DOJ with regard to discrimination pursuant to Section 706(g) of ECOA.”  This lack of fair lending enforcement was a topic covered at both the House Financial Services Committee and Senate Banking Committee hearings, among other issues, including the CFPB’s perceived lack of enforcement generally, the GSE Patch, and the payday loan rule.  We expect this to be an area of criticism facing the Bureau in the future. 

On October 11, 2019, the Bureau announced it was creating a new Taskforce on Federal Consumer Financial Law “to examine ways to harmonize and modernize federal consumer financial laws.”  The taskforce will study the current legal and regulatory environment facing consumers and financial services providers and report its recommendations on ways to improve consumer financial laws and regulations to Director Kraninger.  The taskforce will have a Chair and approximately six members, who will develop and manage the report’s final contents.  The Bureau plans to select members with demonstrated records of both senior public service and expertise in consumer finance, including:

·        Expertise in consumer protection and consumer financial products or services.

·        Significant experience researching and analyzing consumer financial markets, laws, and regulations.

·        Past record of senior public or academic service.

·        Recognition for professional achievements and objectivity in economics, econometrics, or law.

The CFPB will accept applications through 5:00pm Eastern on October 25, 2019.  You can find the announcement here: https://www.consumerfinance.gov/about-us/newsroom/cfpb-announces-taskforce-federal-consumer-financial-law/. 

Finally, on September 25, 2019, the CFPB announced several additions to its executive team, including, most notably for our audience, the Associate Director for Supervision, Enforcement and Fair Lending (SEFL).  The new Associate Director of SEFL is Bryan A. Schneider.  Before the CFPB, Mr. Schneider served as the Secretary of the Illinois Department of Financial and Professional Regulation where he was responsible for all state-level oversight of banks, credit-unions and non-depository institutions.  

As many of our readers know, SEFL is the division within the CFPB responsible for ensuring compliance with the federal consumer financial laws through supervision and enforcement.  It includes the Office of Supervision Examinations, the Office of Supervision Policy, and the Office of Enforcement.  This is certainly an important role at the CFPB, and it is good to see it filled with a permanent Associate Director. 

The other executive team additions are as follows: Associate Director for the Consumer Education and Engagement Division, Desmond Brown; Associate Director for the Research Division, Jason Brown; Deputy Chief of Staff, Karla Carnemark; and Chief Data Officer, Ren Essene.  The announcement can be found here: https://www.consumerfinance.gov/about-us/newsroom/cfpb-announces-additions-executive-team/. 

Garris Horn PLLC represents clients subject to CFPB investigations and enforcement actions, and in connection with supervisory examinations.  For more information on these CFPB announcements, or to discuss any other CFPB-related matters, please contact us.