Compliance Blog

Written by Steve Van Beek

On Monday, the Designated Transfer Date for the new Consumer Financial Protection Bureau (CFPB) was published in the Federal Register.  The transfer date has been set for July 21, 2011 - the latest possible date, one year from signing of Dodd-Frank, the Treasury could have set without pleading for additional time.  On this date, the other agencies will transfer powers to the CFPB and the CFPB gains its additional powers set up in the Dodd-Frank law.  What will the CFPB do between now and then:

"In the intervening period, the CFPB will lay the groundwork for an efficient transfer and prepare for consumer protection activities after July 21, 2011. For instance, prior to the designated transfer date, the CFPB will begin to conduct research relating to consumer financial products and services, develop its nationwide consumer complaint response center, plan and take steps to implement the risk-based supervision of nondepository covered persons, and prepare for the opening of outreach offices."

The notice goes on to emphasize the importance of the CFPB's role in regulating nondepository institutions:

"Development of the supervision program for certain nondepository covered persons is particularly significant because no Federal agency previously has had the responsibility ofsupervising these entities, such as payday lenders, mortgage companies, debt collectors, and consumer reporting agencies. Prior to the designated transfer date, the CFPB will begin the significant task of building this supervision program, including hiring and training examination staff and making preparations necessary to begin a risk-based supervision program." 

What about the CFPB's other responsibilities, such as combining RESPA and TILA mortgage disclosures?

"The CFPB will also work during the intervening period to prepare for the new authorities that will transfer or take effect as of the designated transfer date, for instance by planning the orderly integration of bank, thrift, and credit union examiners from five different Federal agencies and preparing for rulemakings required under the Dodd-Frank Wall Street Reform and Consumer Protection Act. For example, the CFPB is holding a roundtable to begin gathering public input regarding the merger of overlapping mortgage forms required by the Truth in Lending Act and Real Estate Settlement Procedures Act."

NAFCU will be participating in the CFPB roundtable on mortgage disclosures held today, see NAFCU Today for more information.

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Also, on Monday the Federal Reserve released its 2009 HMDA Data.