CFPB Rescinds Seven Policy Statements Issued Last Year
Last week, the Consumer Financial Protection Bureau (CFPB) announced its rescinding of seven policy statements issued in 2020 that provided temporary flexibility to financial institutions in markets such as mortgages, credit reporting, and credit and prepaid cards throughout the coronavirus pandemic.
“Providing regulatory flexibility to companies should not come at the expense of consumers. Because many financial institutions have developed more robust remote capabilities and demonstrated improved operations, it is no longer prudent to maintain these flexibilities,” said CFPB Acting Director Dave Ueijo. “The CFPB’s first priority, today and always, is protecting consumers from harm.”
The rescinded policy statements were issued between March 26, 2020 and June 3, 2020. The rescission removes the Bureau as a signatory to loan modification and mortgage disclosure policy statements. It also provides guidance for how entities should meet specific information collections requirements concerning prepaid accounts and credit cards.
Additionally, the rescission instructs land developers that are subject to Regulation J and ILSA to proceed with filing annual activity reports and financial statements specified in Regulation J. The rescission leaves the “Furnishing Consumer Information Impacted by COVID-19” section intact to show the CFPB’s support of furnishers’ efforts to provide payment relief to consumers.
The new Bulletin 2021-01 announced that the CFPB will continue to rely on matters requiring attention (MRAs), but will discontinue use of Supervisory Recommendations. With the rescissions, the CFPB is planning on exercising its full enforcement and supervisory authorities provided under the Dodd-Frank Act.
The specific policy statements that are being rescinded are:
- Statement on Bureau Supervisory and Enforcement Response to COVID-19 Pandemic (March 26, 2020)
- Statement on Supervisory and Enforcement Practices Regarding Quarterly Reporting Under the Home Mortgage Disclosure Act (March 26, 2020)
- Statement on Supervisory and Enforcement Practices Regarding the CFPB Information Collections for Credit Card and Prepaid Account Issuers (March 26, 2020)
- Statement on Supervisory and Enforcement Practices Regarding the Fair Credit Reporting Act and Regulation V in Light of the CARES Act (April 1, 2020)
- Statement on Supervisory and Enforcement Practices Regarding Certain Filing Requirements Under the Interstate Land Sales Full Disclosure Act (ILSA) and Regulation J (April 27, 2020)
- Statement on Supervisory and Enforcement Practices Regarding Regulation Z Billing Error Resolution Timeframes in Light of the COVID-19 Pandemic (May 13, 2020)
- Statement on Supervisory and Enforcement Practices Regarding Electronic Credit Card Disclosures in Light of the COVID-19 Pandemic (June 3, 2020)
- Bulletin 2018-01: Changes to Types of Supervisory Communications