WASHINGTON–The Consumer Financial Protection Bureau (CFPB) has identified six regulatory activities for 2022 on which it plans to take “key” actions.
The CFPB said the list of matters the agency plans to pursue from through Oct. 31, 2022 “reflects the continuation of significant rulemakings that further our consumer financial protection mission and help to advance the country’s economic recovery from the financial crisis related to the COVID-19 pandemic.”
According to the Bureau, those six key actions include:
- Small Business Lending Data Collection
- Availability of electronic consumer financial account data
- Property Assessed Clean Energy (PACE) Financing
- Standards for Automated Valuation Models (AVMs)
- Facilitating transition away from LIBOR Index
- Reviewing existing regulations and market monitoring
Coming as something of a surprise is what’s not included on the list: plans for additional regulation/oversight of overdraft fees at credit unions and banks.
Saying many big banks are “hooked on fees,” the CFPB recently announced it planned to take action on overdrafts.
In its statement on the key actions it plans, the CFPB said of each:
Small Business Lending Data Collection
The comment period closes Jan. 6 on a proposal the Bureau issued in October that would require financial institutions to report information about small business credit applications, including information related to the credit applied for, demographic and other information about the small business credit applicant, and key elements of the price of the credit offered. The CFPB said it expects to move to a final rule after reviewing comments received.
Availability of Electronic Consumer Financial Account Data
As CUToday.info reported, in November 2020, the Bureau issued an advance notice of proposed rulemaking (ANPR) to address the availability of consumer financial account data in electronic form, in order to help consumers understand their finances and “make better-informed decisions.”
The comment period closed in February 2021, and the CFPB is saying it is considering the comments and monitoring the market as it assesses potential next steps, including whether a small business review panel is required pursuant to the Regulatory Flexibility Act.
Property Assessed Clean Energy (PACE) Financing
In March 2019, the Bureau issued an ANPR to solicit information aimed at developing a proposed rule on PACE financing. At the time the CFPB defined that as “a tool for consumers to finance certain improvements to residential real property. The financing has characteristics of both home equity lending and real property taxes, and like home equity loans, PACE obligations arise through a voluntary contract and are secured by real property.”
But the Bureau also noted that under state law, PACE loans are billed and repaid as special property tax assessments and typically secured by a lien with equal priority to real property taxes. The Bureau said it continues to seek input.
Standards for Automated Valuation Models (AVMs)
According to the Bureau, it has joined with the Fed, OCC, FDIC, FHFA and NCUA in working to develop regulations concerning automated valuation models (AVMs). The amendments require rules for quality control standards for AVMs.
“These quality control standards are designed to ensure a high level of confidence in the estimates produced by the valuation models, protect against the manipulation of data, seek to avoid conflicts of interest, require random sample testing and reviews, and account for any other such factor that the Agencies determine to be appropriate,” the Bureau said.
Facilitating the Transition Away From LIBOR
As CUToday.info also reported, the Bureau recently issued a final rule to address the anticipated expiration of the London Interbank Offered Rate (LIBOR) index, which expires completely in June 2023 (no new loans using the rate may be written after Dec. 31).
“This rulemaking is important for the millions of consumers who have adjustable-rate mortgages, credit cards, student loans, reverse mortgages, home equity lines of credit, or other loans that are tied to the LIBOR index,” the CFPB said.
It added the rule is designed to lessen the financial impact to consumers and facilitate creditor compliance by providing examples of replacement indices that meet Regulation Z requirements.
Reviewing Existing Regulations and Market Monitoring
Noting it is required by law to assess significant rules or orders it issues within five years after taking the action, the Bureau said in a statement, “We decided to conduct an assessment of a rule implementing the Home Mortgage Disclosure Act (HMDA), most of which became effective in January 2018, and recently (Nov. 22) issued a Request for Information seeking comment from the public to ensure the Bureau can use the data collected under this rule to most effectively meet its goals.”
The CFPB said it is also “continuing to monitor markets for consumer financial products and services to identify risks to consumers and the proper functioning of such markets.”