Hard Part Just Starting for CFPB After Busy First Year

American Banker
December 31, 2012
Witkowski, Rachel
Vol. 177, No. 249

The new Consumer Financial Protection Bureau (CFPB) in 2012 finalized its first rule and took its first enforcement actions, but even greater challenges are ahead for the agency in 2013. These include finalizing new rules that address a large share of the market and increased enforcement against banks and nonbanks. The CFPB must finalize new mortgage rules by Jan. 21, including rules for "qualified mortgages," originator compensation, high-risk appraisals, and force-placed insurance. These are expected to alter access to credit and how mortgages are written. What is unclear is how the CFPB will define qualified mortgages and what kind of protection it will provide lenders that make qualified mortgages. Also coming next year is consolidation of the Truth in Lending Act and Real Estate Settlement Procedures Act forms. Aside from finalizing new rules, the CFPB will also increase its supervision and enforcement activities. Consultants have pointed out that the CFPB is bringing enforcement attorneys into an exam, a unique move among banking regulators. The agency probably will continue in-depth monitoring of third-party vendors. Experts are unsure what the bureau will target next, but they do note that the agency has undergone massive data collecting, including taking consumer complaints on financial products and data from credit-reporting agencies. CFPB leadership going into 2014 also remains a mystery, including who will succeed current deputy director Raj Date.

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