On May 14, the CFPB published a Federal Register notice withdrawing its proposed rule requiring nonbanks to report the existence of an order and file annual compliance reports where such nonbanks were subject to certain final public orders. As previously covered by InfoBytes, this rule would have created a registry requiring nonbanks to report the existence of such public orders to assist the public and enforcement agencies in identifying “repeat offenders.” However, the proposed rule would not apply to insured depository institutions or insured credit unions. In the proposal, the CFPB expressed concern that the costs the rule imposes on regulated entities would be passed on to consumers, and such additional cost may not merit the desired benefits.
The Bureau plans to make this rule effective immediately when the final rule is published; however, the CFPB seeks comment on whether there should be a delayed effective date. The comment period ends on June 13.
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