As has been well-documented, the Consumer Financial Protection Bureau (CFPB or Bureau) is navigating a period of significant uncertainty. Just last week, the U.S. Court of Appeals for the District of Columbia vacated a preliminary injunction in the case of National Treasury Employees Union v. CFPB, potentially allowing for substantial layoffs and operational changes within the agency (discussed here). Despite this development, the CFPB briefly released an ambitious rulemaking agenda on the OMB’s Office of Information and Regulatory Affairs website on August 15, which then became inaccessible due to “Site Maintenance.”
CFPB’s Rulemaking Agenda
The CFPB has unveiled a comprehensive Unified Rulemaking Agenda with 24 items, doubling the number of rulemakings from its Fall 2024 agenda. Key areas of focus include:
- UDAAP Abusiveness Standard: The CFPB aims to clarify the standard for unfair, deceptive, or abusive acts or practices (UDAAP). This involves potentially redefining conduct considered unlawful under the UDAAP standard to ensure more precise enforcement.
- Loan Originator Compensation Rule: The Bureau is considering rescinding existing regulations concerning loan originator compensation, which could significantly impact the mortgage lending industry by altering compensation structures.
- Payday Lending Rule: The CFPB plans to revisit the 2017 payday lending rule, which was previously upheld by the U.S. Supreme Court. This reconsideration may involve adjustments to regulations governing payday, vehicle title, and certain high-cost installment loans.
- Section 1033 Personal Financial Data Rights: Amid ongoing litigation, the CFPB is revisiting data access rules under Section 1033, governing open banking.
- Risky Nonbank Supervisory Designations: The agenda includes tightening standards for designating nonbank companies as subject to CFPB supervision because they are “risky” under the Dodd-Frank Act and revoking rules that publicize these designations.
- Larger Participant Rules: The CFPB is considering raising thresholds for larger participant rules in markets such as auto lending and debt collection (see discussion here).
- ECOA Compliance: The Bureau seeks to align enforcement of the Equal Credit Opportunity Act (ECOA) with recent executive orders, potentially focusing on clarifying obligations imposed by the statute to facilitate compliance and address issues like religion-based debanking.
- Small Business Lending: The CFPB plans to issue a new proposed rule on small business lending data collection and reporting (Section 1071) before the end of 2025.
Our Take
The CFPB’s future remains uncertain, with legal challenges and operational changes on the horizon. However, the Bureau’s ambitious rulemaking agenda suggests a commitment to continue to roll back actions taken under the prior administration, even with a highly limited staff.
