CFPB publishes spring 2021 rule-making program | Weiner Brodsky Kider PC
The CFPB recently published its latest semi-annual report agenda planned regulatory activities as part of the unified program of federal executive regulation and deregulation of the spring of 2021. The agenda lists the regulatory actions that the Bureau reasonably anticipates it will consider during the period 1 May 2021 to April 30, 2022. This is the first regulatory program released by the Bureau during the Biden administration.
The new agenda lists two items as in the âfinal rule stepâ:
- Debt recovery. Partly due to the “societal disruption” caused by the COVID-19 pandemic, in April 2021, the CFPB issued a Notice of Regulatory Proposal (NPRM) that would extend the parties’ effective date by 60 days. I and II of its debt collection rule. Both parts of the debt collection rule are expected to come into effect on November 30, 2021.
- LIBOR. In June 2020, the CFPB proposed changes to Regulation Z to deal with the early expiration of the London Interbank Offered Rate (LIBOR), an index commonly used to calculate the interest rate on consumer credit products at floating rate. The Bureau expects to publish a final rule in January 2022.
There are three items recognized in the agenda as in the âproposed rule stageâ:
- Data on business loans (Regulation B). The Bureau plans to issue an NPRM for a rule implementing Section 1071 of the Dodd-Frank Act. The rule will aim to “facilitate the enforcement of fair loan laws and enable communities, government entities and creditors to identify the business and community development needs and opportunities of women, minorities and small businesses.” . The Bureau expects to publish this NPRM by September 2021.
- Amendments to FIRREA regarding assessments (automated assessment models). Under interagency regulation, the CFPB, the Federal Reserve System Board of Governors, OCC, FDIC, NCUA and FHFA (collectively, the Agencies) plan to “develop regulations to implement Implements the changes made by the Dodd-Frank Act to the Financial Institutions Reform, Collection and Enforcement Act 1989 (FIRREA) relating to valuations. The Bureau estimates that agencies will publish an NPRM in December 2021.
- Mortgage Services COVID-19 Relief. In April 2021, the Bureau issued an NRPM to amend Regulation X to address the national COVID-19 emergency. The proposed rule “aims to ensure that mortgage borrowers are assessed for loss mitigation before providers initiate the foreclosure process and to avoid, to the extent possible, a foreclosure crisis when COVID-19 abstentions come to an end “. The comment period on the NPRM ended on May 10, 2021, and the Bureau estimates that it will issue a final rule in July 2021.
The points identified in the agenda as in the âpre-settlement phaseâ are:
The Bureau identifies the following issues as âlong-term actionsâ:
- Potential changes to mortgage management rules, including changes to loss mitigation provisions that would “meet the actions required of officers working with borrowers affected by natural disasters or other emergencies “.
- Artificial intelligence and concerns about use in the credit process, including âthe risks of illegal discrimination and lack of transparencyâ.
The next agenda will be published in fall 2021, and the CFPB will update the spring 2021 agenda until fall 2022.