![]() He also stated that simpler rules will promote consistency among other regulatory agencies that enforce the rules. He also described the benefit of “simple bright-lines,” stating that they “allow all parties to better understand the law and policy priorities,” and prevent use of “loopholes” with “creative lawyering” or intentional misunderstandings of the law. Director Chopra also discussed his views generally on the existing consumer finance rules that the CFPB has authority over, stating that they are “highly complicated” and “the failed approach of the past.”ĭirector Chopra stated that, “regulators have historically issued overly complicated and tailored rules for the existing regulatory landscape, as opposed to providing basic bright-line guidance and rules that can withstand evolution of the marketplace over time.” He described the past rules as the “failed approach of the past.” He also described his view that complex rules, in addition to impeding consumer protection, increase compliance costs, which benefits “high-priced lawyers” and places new market entrants and smaller companies at a disadvantage. In Director Chopra’s blog post, he announced an initiative to review certain aspects of several existing rules and CFPB authority under the Dodd-Frank Act, including the Ability-to-Repay/Qualified Mortgage rule (QM rule). Director Chopra’s Blog Post Announcing New Regulatory Initiatives However, it appears that the CFPB’s Director Rohit Chopra does have some other longer-term rulemaking activities planned, which he announced in a blog post on June 17, 2022, right before OMB published the CFPB’s Regulatory Agenda on its website. Interestingly, the OMB website does not list any long-term regulatory agenda items for the CFPB. FCRA Prohibition on Inclusion of Adverse Information in Consumer Reporting in Cases of Human Trafficking - This rule would implement a recent amendment to FCRA by the National Defense Authorization Act for Fiscal Year 2022, which prohibits consumer reporting agencies from furnishing a consumer report containing any adverse item in cases of human trafficking.We discussed this rule on our firm’s Jwebinar you can find here. The Regulatory Agenda states that the CFPB plans to issue a SBREFA outline for this rule in November 2022. ![]() The Dodd-Frank Act Section 1033 Rulemaking to Require Consumer Access to Financial Records – This rule would implement the Dodd-Frank Act Section 1033’s requirement that the CFPB issue rules to require covered persons to provide consumers with access to their financial data.We’ve written about the proposed rule before here. The Regulatory Agenda notes the proposed rule issued in 2021 and states that a final rule is planned for March 2023. The Dodd-Frank Act Section 1071 Rulemaking to Require Reporting of Small Business Lending Data – This rule would implement the Dodd-Frank Act Section 1071’s amendments to ECOA to require financial institutions to collect and report data on small business lending, including the race, ethnicity, and sex of the principal owners of the business.We’ve written about this rule before here. The Regulatory Agenda notes that an Advanced Notice of Proposed Rulemaking was issued back in 2019 and states that a proposed rule is expected in May 2023. The PACE Ability to Repay Rule – This rule would implement 2018’s Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155) amendments to TILA that require the CFPB to prescribe specific ability-to-repay requirements for PACE financing. ![]() We discussed this rule on our firm’s recent April 29th webinar you can find here. The Regulatory Agenda notes that the SBREFA outline for this rule was posted in February 2022, and states that a proposed rule is planned for December 2022. The CFPB’s Small Business Regulatory Enforcement Fairness Act (SBREFA) outline also proposes a fifth quality control factor focused on fair lending.
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