Compliance Blog

Written by Steve Van Beek

The CFPB has begun the reorganization of the "inherited regulations."  The CFPB had hinted at this movement earlier in December and we blogged on this on December 5th and December 7th.

What is the CFPB Doing?

The CFPB is republishing the consumer regulations that transitioned to the CFPB on July 21, 2011 according to Dodd-Frank.  In the future, these consumer regulations will be located in the CFPB's section of the Electronic Code of Federal Regulations (Chapter X of Title 12).

Can you Explain that in Plain English?

Sure.  On July 21, 2011, the CFPB took over the regulatory authority for consumer laws and regulations.  These laws and regulations had been historically under the control of other Federal regulators (including NCUA).  Each regulator has its own section of the Code of Federal Regulations (NCUA's regulations are in Chapter VII).

Dodd-Frank transferred authority of these consumer regulations from the Federal regulators to the CFPB.  Thus, the CFPB is now taking the steps to transfer these existing regulations from their current place to the CFPB's section of the Code of Federal Regulations.

For example, Regulation Z, 12 CFR 226, had been under the Federal Reserve's authority until July 21, 2011.  The CFPB will transfer this regulation to its part of the Code of Federal Regulations with the result being the requirements of Regulation Z will be located in 12 CFR 1026 in the future.   

What is the Timeline for the CFPB's Transition?

In footnotes in the CFPB's Interim Final Rules, the CFPB indicated the transition would most likely be completed by the end of the year.  The Interim Final Rules will be effective December 30, 2011.  Here is from Footnote 10 of the HMDA/Regulation C rule:

"10. This interim final rule is one of 14 companion rulemakings that together restate and recodify the implementing regulations under 14 existing consumer financial laws (part III.C, below, lists the 14 laws involved). In the interest of proper coordination of this overall regulatory framework, which includes numerous cross-references among some of the regulations, the Bureau is establishing the same effective date of December 30, 2011 for those rules published on or before that date and making those published thereafter (if any) effective immediately."

Which Regulations Will Be Impacted?

The regulations that will be transferred are those that implement the "enumerated consumer laws" as defined by Dodd-Frank.  Previously, the CFPB had issued a listing of those regulations in the Federal Register.  

Here is from the HMDA/Regulation C rule:

"12. The fourteen laws implemented by this and its companion rulemakings are: the Consumer Leasing Act, the Electronic Fund Transfer Act (except with respect to section 920 of that Act), the Equal Credit Opportunity Act, the Fair Credit Reporting Act (except with respect to sections 615(e) and 628 of that act), the Fair Debt Collection Practices Act, Subsections (b) through (f) of section 43 of the Federal Deposit Insurance Act, sections 502 through 509 of the Gramm-Leach-Bliley Act (except for section 505 as it applies to section 501(b)), the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the S.A.F.E. Mortgage Licensing Act, the Truth in Lending Act, the Truth in Savings Act, section 626 of the Omnibus Appropriations Act, 2009, and the Interstate Land Sales Full Disclosure Act."

We'll have additional information on this republishing tomorrow.  Stay tuned.