CFPB Reviewing its Examination Process?
Kathy Kraninger, Director of the Consumer Financial Protection Bureau, recently said that the federal agency is reviewing its examination process, especially how it works in conjunction with other federal regulators.
“We are taking a fresh look at the entire process of examinations to ensure that we’re risk-prioritizing our resources, utilizing technology to automate certain tasks and taking full advantage of appropriate partnerships with our fellow regulators,” said Kraninger at an event at the Exchequer Club. “Our approach must recognize that the bureau is not the only government agency with supervisory authority over financial institutions.”
At the event, Kraninger also said that she was working with leadership at the Federal Housing Finance Agency and the Department of Treasury about the Qualified Mortgage patch, which allows certain loans to exceed the CFPB’s debt-to-income requirement. The program expires in January 2021.
“I can assure you that we are talking extensively about understanding those interdependencies of those decisions,” said Kraninger. “While the decision ultimately on the patch is mine, I do think it’s important to understand what those other moving parts are in making sure we have a stable, transparent path forward.”