[Federal Register Volume 83, Number 34 (Tuesday, February 20, 2018)]
[Notices]
[Pages 7166-7168]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03358]
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BUREAU OF CONSUMER FINANCIAL PROTECTION
[Docket No. CFPB-2018-0004]
Request for Information Regarding the Bureau's Supervision
Program
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Notice and request for information.
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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is
seeking comments and information from interested parties to assist the
Bureau in assessing the overall efficiency and effectiveness of its
Supervision Program, and, consistent with the law, considering whether
any changes to the program would be appropriate.
DATES: Comments must be received by May 21, 2018.
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ADDRESSES: You may submit responsive information and other comments,
identified by Docket No. CFPB-2018-0004, by any of the following
methods:
Electronic: Go to http://www.regulations.gov. Follow the
instructions for submitting comments.
Email: [email protected]. Include Docket
No. CFPB-2018-0004 in the subject line of the message.
Mail: Comment Intake, Consumer Financial Protection
Bureau, 1700 G Street NW, Washington, DC 20552.
Hand Delivery/Courier: Comment Intake, Consumer Financial
Protection Bureau, 1700 G Street NW, Washington, DC 20552.
Instructions: The Bureau encourages the early submission of
comments. All submissions must include the document title and docket
number. Please note the number of the topic on which you are commenting
at the top of each response (you do not need to address all topics).
Because paper mail in the Washington, DC area and at the Bureau is
subject to delay, commenters are encouraged to submit comments
electronically. In general, comments received will be posted without
change to http://www.regulations.gov, with exceptions including those
noted below. In addition, comments will be available for public
inspection and copying at 1700 G St NW, Washington, DC 20552, on
official business days between the hours of 10 a.m. and 5 p.m. eastern
standard time. You can make an appointment to inspect the documents by
telephoning 202-435-7275.
Submissions in response to this request for information, including
attachments and other supporting materials, will become part of the
public record and subject to public disclosure. Proprietary information
or sensitive personal information, such as account numbers or Social
Security numbers, or names of other individuals should not be included.
Commenters should also refrain from submitting confidential
supervisory information (CSI), as defined in 12 CFR 1070.2(i). If
discussing interactions on an examination, commenters should speak in
generalities, and should refrain from describing the content of
supervisory communications or the results of specific exams. Commenters
may wish to submit input anonymously or through a representative if
associating their name with their public comment would disclose the
fact that they have been examined by the Bureau or the results of a
particular exam. The Bureau reserves the right to redact or refrain
from publishing CSI consistent with 12 CFR 1070.41 et seq.
FOR FURTHER INFORMATION CONTACT: For general inquiries and submission
process questions, please call Brian Shearer, Counsel, at (202) 435-
7611.
SUPPLEMENTARY INFORMATION: The Bureau has supervisory authority over
insured depository institutions and credit unions with total assets
over $10 billion and their affiliates, as well as non-depository
financial institutions, regardless of size, in certain specific markets
including mortgage companies (originators, brokers, servicers, and
offerors of loan modifications or foreclosure relief services), payday
lenders and private education lenders. The Bureau also has supervisory
authority over non-depository larger participants of other markets as
the Bureau defines by rule. To date, this includes larger participants
in the consumer reporting, debt collection, student loan servicing,
international money transfer, and automobile finance markets.
Additionally, the Bureau has authority over service providers of the
above referenced supervised entities, and service providers to a
substantial number of depository institutions and credit unions with
total assets of $10 billion or less. More detail regarding the Bureau's
supervisory authority can be found principally at 12 U.S.C. 5514-5516
and 12 CFR parts 1090 and 1091.
The Bureau is, as described below, issuing this request for
information seeking public comment on how best to achieve meaningful
burden reduction or other improvement to the processes used by the
Bureau to supervise for compliance with Federal consumer financial law
(Supervision Program) while continuing to meet the Bureau's statutory
and regulatory objectives and ensuring a fair and transparent process
for supervised entities.
Overview of This Request for Information
The Bureau is using this request for information to seek public
input regarding its Supervision Program. The Bureau's ability to
supervise entities is an essential part of the Bureau's statutory
mission of enforcing Federal consumer financial laws. The Bureau
engages in supervisory activities in accordance with applicable law and
in furtherance of its statutory mandate. The Bureau understands,
however, that the Bureau's supervisory activities can impose burdens on
entities. The Bureau encourages comments from all interested members of
the public. The Bureau anticipates that the responding public may
include supervised entities or companies supervised by other agencies,
compliance professionals or members of the bar who represent these
entities, individual consumers, consumer advocates, regulators, and
researchers, or members of academia.
Suggested Topics for Commenters
To allow the Bureau to evaluate suggestions more effectively, the
Bureau requests that, where possible, comments include:
Specific suggestions regarding any potential updates or
modifications to the Bureau's Supervision Program, consistent with the
Bureau's statutory objectives, and including, in as much detail as
possible (though without disclosing CSI), potential updates or
modifications, supporting data or other information on impacts and
costs, or information concerning alignment with the processes of other
agencies with similar authorities; and
Specific identification of any aspects of the Bureau's
Supervision Program that should not be modified, consistent with the
Bureau's statutory objectives, and including supporting data or other
information on impacts and costs, or information concerning alignment
with the processes of other agencies with similar authorities.
The following list represents a preliminary attempt by the Bureau
to identify elements of Bureau processes related to its Supervision
Program that may be deserving of more immediate focus. This non-
exhaustive list is meant to assist in the formulation of comments and
is not intended to restrict the issues that may be addressed. In
addressing these topics or others, the Bureau requests that commenters
identify with specificity the Bureau regulations or practices at issue,
providing legal citations where appropriate and available. Please feel
free to comment on some or all of the topics below, but please be sure
to indicate on which area you are commenting. As noted in the
instructions above, please refrain from revealing CSI in your public
comment.
The Bureau is seeking feedback on all aspects of its Supervision
Program, including but not limited to:
1. The timing, frequency, and scope of supervisory exams.
2. The timing, method or process used by the Bureau to collect
information and documents from a supervised entity prior to the
commencement of an examination. Typically, the Bureau sends an
examination Information Request (IR) to a supervised entity prior to
the commencement of an examination. An IR is a list of information and
documents that the supervised entity is asked to provide to the Bureau
for off-site review or to make available when examiners are onsite at
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the entity. An IR is typically sent to an entity at least 60 days prior
to the onsite start of an examination.
3. The type and volume of information and documents requested in
IRs.
4. The effectiveness and accessibility of the CFPB Supervision and
Examination Manual (Exam Manual). The Exam Manual provides internal
direction to supervisory staff, including summaries of statutes and
regulations and specific examination procedures for use by examiners in
conducting exams. It is published on the Bureau's website to promote
transparency and assist the public in understanding how the Bureau
oversees supervised entities.
5. The efficiency and effectiveness of onsite examination work.
Typically, while onsite, examination teams may review documents and
data, hold meetings with management, conduct interviews with staff,
make observations, and conduct transaction testing.
6. The effectiveness of Supervision's communications when potential
violations are identified, including the usefulness and content of the
potential action and request for response (PARR) letter. A PARR letter
provides an entity with notice of preliminary findings of conduct that
may violate Federal consumer financial laws and advises the entity that
the Bureau is considering taking supervisory action or a public
enforcement action based on the potential violations identified in the
letter. Supervision invites the entity to respond to the PARR letter
within 14 days and to set forth in the response any reasons of fact,
law or policy why the Bureau should not take action against the entity.
The Bureau often permits extensions of the response time when
requested.
7. The clarity, organization, and quality of communications that
report the results of supervisory activities, including oral
communications from examiners and Supervisory Letters and Examination
Reports.
8. The clarity of matters requiring attention (MRA) and the
reasonability of timing requirements to satisfy MRAs. An MRA is used to
address violation(s) of Federal consumer financial law or compliance
management weaknesses. MRAs often require a written response to the
Bureau and will include a due date for completion.
9. The process for appealing supervisory findings.
10. The use of third parties contracted by supervised entities to
conduct assessments specified in MRAs, or to assess the sufficiency of
completion of an MRA.
11. The usefulness of Supervisory Highlights to share findings and
promote transparency. The Bureau periodically publishes Supervisory
Highlights to apprise the public about its examination program,
including the concerns that it finds during the course of its work.
12. The manner and extent to which the Bureau can and should
coordinate its supervisory activity with Federal and state supervisory
agencies, including through use of simultaneous exams, where feasible
and consistent with statutory directives.
Authority: 12 U.S.C. 5511(c).
Dated: February 12, 2018.
Mick Mulvaney,
Acting Director, Bureau of Consumer Financial Protection.
[FR Doc. 2018-03358 Filed 2-16-18; 8:45 am]
BILLING CODE 4810-AM-P