Twice each year, the CFPB publishes its rulemaking agenda. Last December, we profiled the CFPB’s fall 2014 agenda. In today’s post, we review the spring 2015 agenda released by the CFPB a few weeks ago.
Looking at the agenda, the CFPB’s priorities still appear to be regulating the consumer mortgage industry, short-term, small dollar lending, debt collection and arbitration. This is certainly not a new policy direction, but in each of these areas, the CFPB is getting closer to final rules that will directly affect the consumer finance industry.
To summarize some of the upcoming initiatives:
- In August 2014, the CFPB issued a proposed rule amending the Home Mortgage Disclosure Act (HMDA) to “align the law with existing industry standards for collecting data on mortgage loans and applications.” A final rule is expected to be released in late summer.
- The CFPB continues to work on implementing mortgage reforms mandated under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. For example, in fall 2015, the CFPB expects to issue a final rule regarding requirements for small creditors, including those who operate in rural and underserved areas.
- The CFPB is working on a final rule creating additional protections for prepaid financial products such as reloadable, prepaid cards and mobile wallets. We expect a final rule in early 2016.
- As we have discussed here and here, the CFPB recently released a Proposal for short-term, small dollar lending. The next step is a Notice of Proposed Rulemaking, which is expected later this year.
- From time to time, the CFPB issues rules defining “larger participants” in various nonbank markets that are subject to supervision—specifically, debt collection, credit reporting, student loan servicing and international money transfers. In the next few months, the CFPB will add one more to this list with a proposed rule defining “larger participants” in the auto lending market.
- In late 2013, the CFPB published an Advanced Notice of Proposed Rulemaking on debt collection practices. The CFPB is still working on a proposed rule.
- In March 2015, the CFPB issued a report on consumer arbitration (which we have discussed here). While there are no specific rulemaking plans in place, the CFPB is considering whether to propose rules governing consumer arbitration.
Consumer finance companies need to pay attention. Several of these initiatives will have a direct impact on the installment lending industry.
So far, it has been a busy year for the CFPB, and it appears to be getting busier.