On or around May 12, three industry groups submitted comment letters following the OMB’s request to identify rules and guidance to be deregulated. The letters submitted by industry groups highlighted several regulations for reconsideration, including those from the CFPB, HUD and the OCC.
A coalition of state bank supervisors proposed the following comments on three regulations:
- Rescission of OCC’s Preemption Regulations;
- Rescission of CFPB’s Nonbank Registry Regulation; and
- Modification of Outdated, Burdensome Community Bank Regulatory Thresholds.
An association of mortgage bankers suggested rescinding the following, among other things:
- CFPB’s Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders, stating this rule is unnecessary and creates more costs than benefits because the information the CFPB seeks is publicly available; and
- CFPB’s Small Business Lending under the Equal Credit Opportunity Act (Regulation B) averred the Bureau has no authority under Section 1071 to promulgate this rule.
The association of mortgage bankers also proposed revisions to the following, among other things:
- CFPB’s Mortgage Servicing Rules under the Real Estate Settlement Procedures Act (Regulation X); and
- CFPB’s Loan Originator Compensation Requirements Under the Truth in Lending Act (Regulation Z).
A fintech association suggested rescinding the following, among other things:
- CFPB’s Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders (12 C.F.R. Part 1092);
- CFPB’s Truth in Lending (Regulation Z); Use of Digital User Accounts To Access Buy Now, Pay Later Loans – Interpretive Rule (89 FR 47068);
- Two circulars: One circular (2024-01) on “Preferencing and steering practices by digital intermediaries for consumer financial products or services”; and also, Circular (2024-03) on “Unlawful and unenforceable contract terms and conditions”;
- Statement of Policy Regarding Prohibition on Abusive Acts or Practices (88 FR 21883);
- Policy Statement on No-Action Letters (90 FR 1970) and Policy Statement on Compliance Assistance Sandbox Approvals (90 FR 1974); and
- Electronic Fund Transfers FAQs pertaining to compliance with the Electronic Fund Transfer Act (EFTA) and Regulation E.
The fintech association also advocated for the withdrawal of the following, among other things:
- Proposed Interpretive Rule regarding Truth in Lending (Regulation Z); Consumer Credit Offered to Borrowers in Advance of Expected Receipt of Compensation for Work (89 FR 61358);
- Proposed Rule Protecting Americans From Harmful Data Broker Practices (Regulation V) (89 FR 101402);
- Proposed Rule Prohibited Terms and Conditions in Agreements for Consumer Financial Products or Services (Regulation AA) (90 FR 3566) and Registry of Supervised Nonbanks That Use Form Contracts To Impose Terms and Conditions That Seek To Waive or Limit Consumer Legal Protections (88 FR 6906);
- Supervisory Authority Over Certain Nonbank Covered Persons Based on Risk Determination; Public Release of Decisions and Orders (87 FR 70703 and 87 FR 25397).
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