Recently the Consumer Financial Protection Bureau (CFPB) published its Fall 2019 rulemaking agenda. The agenda identifies the regulatory matters that the CFPB reasonably anticipates having under consideration during the period from October 1, 2019 to September 30, 2020.
The following summaries a few key topics:
Proposed Fair Debt Collection Rule (Regulation F) – The CFPB proposed Regulation F in May 2019. Now the CFPB is testing consumer disclosures related to time-barred debt and, after testing, will assess whether to issue a supplemental proposal seeking comments on a proposal concerning such disclosures. The agenda indicates that the Bureau expects to issue a final debt collection rule in 2020.
Loan Originator Compensation – The CFPB has moved this item to its long-term regulatory agenda. It plans to examine whether it should permit:
- Adjustments to a loan originator’s compensation in connection with originating state housing finance authority loans to facilitate the origination of such loans, and
- Creditors to decrease an originator’s compensation due to the originator’s error.
Regulation Z and E-Sign – This agenda item is also moving to the long-term list. The agency is considering a rulemaking to address a range of issues at the intersection of E-SIGN and Regulation Z with regard to credit cards. Noting that similar concerns about the effect of E-SIGN were raised with respect to other consumer financial products and services including checking accounts, the CFPB states that it anticipates what it learns in the credit card context may assist it in assessing whether there are similar concerns with other products and services that may be appropriate to address in future rulemakings.
Payday Lending Rule – In February 2019, the CFPB issued a proposal (Regulation OO) to rescind the ability to repay provisions of its final rule. The agenda estimates issuance of a final rule in April 2020.
Business Lending Data (Dodd-Frank Section 1071) – Section 1071 amended the Equal Credit Opportunity Act to require financial institutions to collect and maintain HMDA-like data in connection with credit applications made by women- or minority-owned businesses and small businesses. Such data includes the race, sex, and ethnicity of the principal owners of the business. The Agenda does not provide a timetable for completing the rule. In response to a lawsuit filed against the CFPB for delays in implementing the rule the agency indicated intent to complete its internal policy making process in the next six months, and within six months thereafter, it expects to release a detailed outline of the proposals under consideration to be followed by a report issued by a SBREFA panel within two months of being officially convened. In other words, it will be years before a rule is completed.
Qualified Mortgages – In March 2019, the CFPB issues an advanced notice of proposed rulemaking to solicit information on Property Assessed Clean Energy (PACE) financing. The agenda estimates that pre-rule activity will occur in December 2019 to address both the PACE provisions and the scheduled expiration of the temporary GSE QM category.
Home Mortgage Disclosure Act (HMDA) – In May 2019, the CFPB issued a proposed HMDA rule concerning the volume threshold that triggers reporting of open-end credit lines and closed-end mortgage loans. Last month, a final concerning an extension of the temporary threshold for open-end credit lines was issued. The agency estimates that it will issue another final rule in March 2020 concerning the permanent thresholds for both open-end credit lines and closed-end mortgage loans.
Abusive Acts and Practices – The CFPB has not scheduled action related to rulemaking to clarify the meaning of “abusive.”
Inherited Regulations – These are the existing regulations that the CFPB inherited from other agencies through the transfer of authorities under the Dodd-Frank Act. The CFPB indicates that it expects to focus its initial review on the subparts of Regulation Z that implement TILA with respect to open-end credit and credit cards in particular.
Consumer Access to Financial Records – In November 2016, the CFPB issues a Request For Information about market practices related to consumer access to financial information. It will continue to monitor market developments and evaluate possible policy responses to issues identified, including potential rulemaking. Possible topics might include specific acts or practices and consumer disclosures. The CFPB expects to hold a symposium on consumer-authorized financial data sharing in 2020.