Steve Antonakes, head of the Depository Supervision Unit of the CFPB recently spoke at a Financial Services Roundtable event in Washington, D.C. on various supervision and enforcement issues. We attended the event and have provided a list of some of his key points below:

  • Bureau has engaged a number of banks. Different approach for different sized banks. One size does not fit all. Not reviewing community banks, so rumors are false. Doubtful will exercise this authority any time soon. 
  • Not all violations must lead to formal enforcement action. Should be a proportional response, so can avoid some public disclosures. Examination will include enforcement as part of "entry meeting" and will not be on site. Supervision will integrate with enforcement. 
  • Currently 60 percent staffed on supervision side. Want career bank examiners. Also have some nonbank personnel picked up from States. Does actually believe that CFPB should include those who actually have underwritten loans and not just criticized them.
  • Largest banks ($100 billion plus) will have continuous supervision, on regular basis. Product reviews, by quarter. Quarterly write ups with core team, supplemented by personnel with expertise in particular markets. For smaller banks, examination will include 4-10 examiners. If clean exam, will not return for 2-3 years.
  • Mortgage servicing, credit cards and payday lending will be focus of his efforts.
  • Fair lending issues will be handled separately, but CFPB divisions will work together. Expect reviews regarding automobile lending. HMDA data of nonbank mortgage companies will be a focus. Their data has been quite bad.
  • Bureau will be very careful regarding UDAAP. No field authority to determine something is an abusive practice.  Credit card lending and mortgage servicing will be the focus here.
  • Level playing field issue: Bureau is moving more deeply into nonbank space. Nonbank supervision is not the same. Nonbanks have lied to the Bureau and there will be more scheduled exams. Checking dumpsters for documents.  
  • CFPB should not be asking for anything that the prudential regulators have not asked for.  
  • While the Bureau is not a safety and soundness regulator, it understands the need to have a profitable banking industry.  
  • In regard to information sharing with state Attorneys General, the Bureau will not share examination information. However, if a state AG has a basis for needing the information, the Bureau will share it.
  • Consumer complaint processing will be ramping up. It serves as an early warning system for the Bureau. May trigger need for an earlier examination of a particular institution. The Bureau is also using the complaint process as a surveillance tool.