Business lending data collection, Home Mortgage Disclosure Act data points, debt collection, and more are yet to come under the current rulemaking agenda of the Consumer Financial Protection Bureau (CFPB).
The agenda is the bureau’s latest update provided for federal regulators’ unified agenda for Spring 2020, compiled prior to the coronavirus (COVID-19) pandemic and financial crisis.
Here are highlights provided by the CFPB:
- Business lending data (September): The Wall Street Reform and Consumer Protection Act amended the Equal Credit Opportunity Act to require the collection, reporting and public disclosure of data concerning credit applications made by women-owned, minority-owned, and small businesses, with rules to be prescribed by the CFPB. The bureau says it plans a survey to get estimates of one-time costs that lenders of varying sizes would incur to collect and report such data. Prior to an October convening of a panel under the Small Business Regulatory Enforcement Fairness Act, the bureau plans to publicly release materials that the panel will discuss with representatives of small entities likely to be directly affected by the bureau’s implementing rule.
- HMDA (Fall 2020): The bureau expects to propose two new rules under the Home Mortgage Disclosure Act (HMDA). One follows up on a May 2019 advance notice of proposed rulemaking concerning certain data points that are reported under the 2015 HMDA rule and coverage of certain business or commercial purpose loans. The second addresses the public disclosure of HMDA data, in light of consumer privacy interests.
- Debt collection (October): Final action is slated on a May 2019 proposed rule that would prescribe rules under Regulation F to govern the activities of debt collectors, as that term is defined under the Fair Debt Collection Practices Act. The bureau proposal would, among other things, address communications in connection with debt collection; and interpret and apply prohibitions on harassment or abuse, false or misleading representations, and unfair practices in debt collection. Later, the bureau also plans to take final action on its supplemental proposal issued in February 2020 regarding time-barred debt disclosures. (The comment deadline on that proposal was extended to August 4 in light of the COVID-19 pandemic.)
Also on the agenda is a final rule to address the protection and disclosure of confidential information that the CFPB obtains in connection with the exercise of its authorities under federal consumer financial law; implementing regulations for quality control standards for automated valuation models for appraisals (jointly with other federal regulators); a higher-priced mortgage loan escrow exemption (already announced Thursday); amendments to Regulation Z to facilitate the LIBOR transition; and a joint rulemaking on the role of supervisory guidance.
Listed under the agency’s long-term actions are a review of Regulation Z rules that implement the Credit Card Accountability Responsibility and Disclosure Act of 2009; potential rulemaking on loan originator compensation under Reg Z; potential future rulemaking or guidance related to E-Sign Act requirements; and ongoing monitoring of the use of artificial intelligence (AI) and machine learning. Regarding AI, the bureau is evaluating whether rulemaking, a policy statement, or other bureau action may be appropriate.