CFPB Expands Supervisory Authority Over Nonbanks – What You Need to Know

March 5, 2024
Event details
March 5, 2024
12:00 – 12:30 pm Eastern Standard Time

Event summary

On February 23, 2024, the Consumer Financial Protection Bureau (CFPB) made public an order under never-before-used authority to bring under its supervision, on the basis that it poses risks to consumers, a nonbank financial institution – an institution that, absent such a finding, it could not examine. Under the Dodd-Frank Act, Congress granted the CFPB automatic authority to examine only certain nonbank providers of financial products and services – institutions engaged in mortgage lending and servicing, private student lending, and payday lending. CFPB rules also permit the agency to examine larger nonbank participants involved in consumer reporting, debt collection, student loan servicing, international money transfers and auto lending.

The order released on February 23 details the path for the CFPB to supervise other institutions it deems “risky” – which is likely to include smaller nonbank financial services providers and fintechs offering novel products and services.

This webinar for clients and industry members discussed the order’s potential impact on nonbank providers that have lived outside the CFPB’s supervisory jurisdiction, the “consumer risk” supervisory designation process and the centrality of consumer complaint management to this process.

For more information, please email Rebecca Lanz.

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