In another sign that the CFPB is ready to begin its active examinations and supervision of various financial institutions, the Bureau announced that it has realigned its “supervision work.” According to a statement released on its blog, the CFPB has reorganized its supervision staff into two new offices: the Supervision Examinations team and the Supervision Policy team. The CFPB’s supervision staff had previously been organized into offices for Nonbank supervision and Large Bank supervision. The CFPB claims (warns) that this “new organization will lead to a better and more coordinated approach to the markets we supervise and a sharper line of sight across both banks and nonbanks.”
In its blog post, the CFPB explained that the Examinations team, which will be headed up by the CFPB’s current Chief of Staff of Large Bank Supervision, Paul Sanford, “will oversee our efforts to: recruit, train, and commission examiners; ensure policies and procedures are followed; and plan and execute examinations appropriately in light of our resources and priorities.” Before joining the CFPB July 2011, Sanford served as the Executive Secretary of the Federal Financial Institutions Examination Council, the Instructional Designer for the Office of the Comptroller of the Currency, and an FDIC Bank Examiner. The Policy team, which is responsible for ensuring “that policy decisions for supervision are consistent with both the law and our mission, and that they are consistent across markets, charters, and regions,” will be run by Peggy Twohig, the current Assistant Director for the Office of Nonbank Supervision. Twohig, prior to joining the CFPB, worked at the Federal Trade Commission for 17 years on enforcement and policy issues related to consumer financial services.
We believe this reorganization—and the appointment of Sanford and Twohig to head these new offices—sends a clear signal that the CFPB is ramping up for more aggressive and extensive examinations, as well as an increased number of on-site supervisions and enforcement actions.