Comments due May 21 for CFPB’s 4th request, ‘supervision’

Comments are due May 21, after a 90-day period, for the Consumer Financial Protection Bureau (CFPB) “request for information” about its Supervision Program. The comments-due date was set in a request for information (RFI) published Tuesday in the Federal Register. The RFI was first announced Feb. 14.

Through this RFI, the CFPB invites public comment on how it can best achieve meaningful burden reduction or other improvement to the processes it uses to supervise for compliance with federal consumer financial law. It is looking for input on improvements that will allow it to continue to meet its own statutory and regulatory objectives and ensure a fair, transparent process for supervised depository and non-depository institutions.

The bureau is looking for specific suggestions regarding any potential updates or modifications to its supervisory program as well as aspects of the program that should not be modified. It asks that suggestions be provided with as much detail as possible but without disclosing confidential supervisory information (CSI). Suggestions may include 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.

Process elements addressed may include, but need not be limited to, the following:

  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. (See RFI for more.)
  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.
  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. (See RFI for more.)
  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 Highlightsto share findings and promote transparency. The Bureau periodically publishes Supervisory Highlightsto 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.

Comments will be shared publicly. In addition to avoiding CSI disclosure, the bureau urges against providing any proprietary information or sensitive personal information, such as account numbers or Social Security numbers, or names of other individuals.

Request for Information, CFPB Supervision Program