Proposed Rule2021-27972
Semiannual Regulatory Agenda
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 31, 2022
Issuing agencies
Consumer Financial Protection Bureau
Abstract
The Bureau of Consumer Financial Protection (Bureau) is publishing this agenda as part of the Fall 2021 Unified Agenda of Federal Regulatory and Deregulatory Actions. The Bureau reasonably anticipates having the regulatory matters identified below under consideration during the period from November 1, 2021 to October 31, 2022. The next agenda will be published in Spring 2022 and will update this agenda through Spring 2023. Publication of this agenda is in accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
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<title>Federal Register, Volume 87 Issue 20 (Monday, January 31, 2022)</title>
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[Federal Register Volume 87, Number 20 (Monday, January 31, 2022)]
[Proposed Rules]
[Pages 5326-5329]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-27972]
[[Page 5325]]
Vol. 87
Monday,
No. 20
January 31, 2022
Part XXI
Bureau of Consumer Financial Protection
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Semiannual Regulatory Agenda
Federal Register / Vol. 87 , No. 20 / Monday, January 31, 2022 / UA:
Reg Flex Agenda
[[Page 5326]]
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BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Chapter X
Semiannual Regulatory Agenda
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Semiannual Regulatory Agenda.
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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is
publishing this agenda as part of the Fall 2021 Unified Agenda of
Federal Regulatory and Deregulatory Actions. The Bureau reasonably
anticipates having the regulatory matters identified below under
consideration during the period from November 1, 2021 to October 31,
2022. The next agenda will be published in Spring 2022 and will update
this agenda through Spring 2023. Publication of this agenda is in
accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
DATES: This information is current as of November 1, 2021.
ADDRESSES: Bureau of Consumer Financial Protection, 1700 G Street NW,
Washington, DC 20552.
FOR FURTHER INFORMATION CONTACT: A staff contact is included for each
regulatory item listed herein. If you require this document in an
alternative electronic format, please contact
<a href="/cdn-cgi/l/email-protection#4c0f0a1c0e130d2f2f293f3f252e25202538350c2f2a3c2e622b233a"><span class="__cf_email__" data-cfemail="c88b8e988a9789ababadbbbba1aaa1a4a1bcb188abaeb8aae6afa7be">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The Bureau is publishing its Fall 2021
Agenda as part of the Fall 2021 Unified Agenda of Federal Regulatory
and Deregulatory Actions, which is coordinated by the Office of
Management and Budget under Executive Order 12866. The agenda lists the
regulatory matters that the Bureau reasonably anticipates having under
consideration during the period from November 1, 2021 to October 31,
2022, as described further below.\1\ The complete Unified Agenda is
available to the public at the following website: <a href="http://www.reginfo.gov">http://www.reginfo.gov</a>.
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\1\ The listing does not include certain routine, frequent, or
administrative matters. The Bureau is reporting information for this
Unified Agenda in a manner consistent with past practice.
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Pursuant to the Dodd-Frank Wall Street Reform and Consumer
Protection Act, Public Law 111-203, 124 Stat. 1376 (Dodd-Frank Act),
the Bureau has rulemaking, supervisory, enforcement, consumer
education, and other authorities relating to consumer financial
products and services. These authorities include the authority to issue
regulations under more than a dozen Federal consumer financial laws,
which transferred to the Bureau from seven Federal agencies on July 21,
2011. The Bureau's general purpose, as specified in section 1021(a) of
the Dodd-Frank Act, is to implement and enforce Federal consumer
financial law consistently for the purpose of ensuring that all
consumers have access to markets for consumer financial products and
services and that markets for consumer financial products and services
are fair, transparent, and competitive.
In addition, section 1021 of the Dodd-Frank Act specifies the
objectives of the Bureau, including ensuring that, with respect to
consumer financial products and services, consumers are provided with
timely and understandable information to make responsible decisions
about financial transactions; consumers are protected from unfair,
deceptive, or abusive acts and practices and from discrimination;
outdated, unnecessary, or unduly burdensome regulations are regularly
identified and addressed in order to reduce unwarranted regulatory
burdens; that Federal consumer financial law is enforced consistently,
without regard to the status of a person as a depository institution,
in order to promote fair competition; and markets for consumer
financial products and services operate transparently and efficiently
to facilitate access and innovation.
The Senate recently confirmed the Bureau's new permanent Director.
In this regulatory agenda the Bureau is prioritizing the continuation
of certain ongoing rulemakings that further the Bureau's consumer
financial protection mission and help to advance the country's economic
recovery from the financial crisis related to the COVID-19 pandemic.
The Bureau also continues to prioritize work that promotes racial and
economic equity and supports underserved, vulnerable and marginalized
communities by, among other things, facilitating access to fair and
affordable credit. The Bureau expects that its new Director, will
assess what regulatory actions the Bureau should prioritize to best
further its consumer protection mission and that the Spring 2022 Agenda
will reflect his priorities.
Continuation of Bureau Regulatory Efforts in Various Consumer Markets
The Bureau is continuing to work on a number of rulemakings to
address important consumer protection issues in a wide variety of
markets for consumer financial products and services, including
mortgages, small business lending, and consumers' access to their own
financial information, among others. The Bureau is mindful of how
critically important these rulemakings are in light of the dire
financial circumstances so many Americans continue to find themselves,
particularly in light of the ongoing COVID-19 pandemic and the
resulting financial crisis, which has affected the financial well-being
of millions of consumers and small businesses. The Bureau is also
mindful that the data show that these hardships fall disproportionately
on individuals, families, and small businesses in communities of color.
For example, section 1071 of the Dodd-Frank Act amended the Equal
Credit Opportunity Act to require, subject to rules prescribed by the
Bureau, financial institutions to collect, report, and make public
certain information concerning credit applications made by women-owned,
minority-owned, and small businesses. Congress enacted section 1071 for
the purpose of (1) Facilitating enforcement of fair lending laws and
(2) enabling communities, governmental entities, and creditors to
identify business and community development needs and opportunities for
women-owned, minority-owned, and small businesses.
Bureau research shows that small businesses play a key role in
fostering community development and fueling economic growth. It also
shows that women-owned and minority-owned small businesses, in
particular, play an important role in supporting their local
communities. To contribute meaningfully to the U.S. economy and to
their local community, small businesses--and especially women-owned and
minority-owned small businesses--need access to credit to smooth
business cash flows from current operations and to allow entrepreneurs
to take advantage of opportunities for growth. This access to credit
will be especially important as the nation works to rebuild the economy
in light of the COVID-19 pandemic and resulting economic impacts. The
Bureau's section 1071 rule, if finalized, would be critical to enabling
the Bureau to protect small business owners, including from unlawful
discrimination, in their access to and use of credit.
The Bureau has been working on this important and complex
rulemaking for a number of years, including through research,
supervisory work, policy development, and engagement seeking comment
and information from the public, small business lenders, and small
businesses themselves, including minority- and women-owned small
businesses. The Bureau made significant progress on implementing
section 1071
[[Page 5327]]
since the Spring 2021 Unified Agenda was published. On October 8, a
Notice of Proposed Rulemaking (NPRM) was published in the Federal
Register which, if finalized as proposed, would, among other things,
require financial institutions to report the amount and type of small
business credit applied for, and extended, demographic information
about small business credit applicants, and key elements of the price
of the credit offered. The Bureau's next action for the section 1071
rulemaking is to review and consider the comments submitted in response
to the proposed rule.
The Bureau is also working on a rulemaking to address the
availability of consumer financial account data in electronic form,
which has helped consumers understand their finances and make better-
informed financial decisions in a variety of ways. Research has
indicated that the availability of certain consumer financial account
data may improve underwriting and expand access to credit. At the same
time, the means by which these data are accessed, transmitted, stored,
and used by financial institutions of all kinds can implicate
significant privacy, security, racial equity, and other consumer
financial protection concerns. Furthermore, consumer access to their
own financial data can foster improved transparency in credit decisions
that affect consumers, including small and very small businesses
relying on consumer credit access, and provide some protection against
poor credit ratings based on serious errors in credit reports. This
ability of consumers to access this information is particularly
important at a time when financial institutions are increasingly using
``alternative data'' in making credit decisions. The Bureau supports
innovation and believes that appropriate implementation of section 1033
can lead to competitive, consumer-friendly markets, while recognizing
the importance of ensuring the safety and security of consumer account
data. Section 1033 of the Dodd-Frank Act provides that, subject to
rules prescribed by the Bureau, covered persons must make available to
consumers, upon request, transaction data and other information
concerning a consumer financial product or service that the consumer
obtains from a covered person. Section 1033 also states that the Bureau
shall prescribe by rule standards to promote the development and use of
standardized formats for information made available to consumers. The
Bureau has taken a number of steps to gather information and
perspectives from the public, financial institutions, consumer advocacy
groups, and others concerning current practices with respect to
financial data access and data sharing and to learn more about this
complex and rapidly-changing market. Most recently, in November 2020,
the Bureau published an Advance Notice of Proposed Rulemaking (ANPRM)
concerning the implementation of section 1033, and accepted comments
until February 2021. The Bureau is reviewing comments received in
response to the ANPRM and is considering those comments, as well as
ongoing market monitoring efforts, as it assesses potential next steps,
including whether a Small Business Review Panel is required pursuant to
the Regulatory Flexibility Act.
Next, the Bureau is continuing its work to implement section 307 of
the Economic Growth, Regulatory Relief, and Consumer Protection Act of
2018 (EGRRCPA), which amends the Truth in Lending Act (TILA) to mandate
that the Bureau prescribe certain regulations relating to ``Property
Assessed Clean Energy'' (PACE) financing. PACE financing is a tool for
consumers to finance certain improvements to residential real property.
It is authorized by State and local governments and is typically
available for projects promoting energy and water conservation, among
other public policy goals identified in state statute. PACE is a hybrid
product, with characteristics of both home equity lending and real
property taxes. Like home equity loans, PACE obligations arise through
a voluntary contract and are secured by real property. But, under State
law, they are billed and repaid as special property tax assessments and
typically secured by a lien with equal priority to real property taxes.
As defined by EGRRCPA section 307, PACE financing results in a tax
assessment on a consumer's real property and covers the costs of home
improvements. EGRRCPA section 307 states that the Bureau's PACE
regulations shall carry out the purposes of TILA's ability-to-repay
(ATR) requirements for residential mortgage loans and apply TILA's
general civil liability provision for violations of the ATR
requirements. The regulations must ``account for the unique nature'' of
PACE financing. Section 307 of the EGRRCPA also specifically authorizes
the collection of data and information necessary to support a PACE
rulemaking. In March 2019, the Bureau released an ANPRM and is
continuing to engage with stakeholders and collect information for the
rulemaking, including by collecting quantitative data on the effect of
PACE on consumers' financial outcomes.
The Bureau is also participating in interagency rulemaking
processes with the Board of Governors of the Federal Reserve System
(Board), the Office of the Comptroller of the Currency, the Federal
Deposit Insurance Corporation, the National Credit Union
Administration, and the Federal Housing Finance Agency to develop
regulations to implement the amendments made by the Dodd-Frank Act to
the Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (FIRREA) concerning automated valuation models. The FIRREA
amendments require implementing regulations for quality control
standards for automated valuation models (AVMs). These standards are
designed to ensure a high level of confidence in the estimates produced
by the valuation models, protect against the manipulation of data, seek
to avoid conflicts of interest, require random sample testing and
reviews, and account for any other such factor that the Agencies
determine to be appropriate. The Agencies will continue to work to
develop a proposed rule to implement the Dodd-Frank Act's AVM
amendments to FIRREA.
The Bureau will be bringing to a close its rulemaking to address
the anticipated expiration of the LIBOR index, which the UK Financial
Conduct Authority has stated that it cannot guarantee publication
beyond June 2023. This rulemaking is important for millions of
consumers who have adjustable-rate mortgages, credit cards, student
loans, reverse mortgages, home equity lines of credit (HELOCs), or
other consumer products that are tied to the LIBOR index. When final,
the rulemaking would help to ensure that any changes to an index
underlying these loans as a result of the transition to a different
index due to the discontinuation of LIBOR are done by industry in an
orderly, transparent, and fair manner. The Bureau's work is designed to
facilitate compliance by open-end and closed-end creditors and to
lessen the financial impact to consumers by providing examples of
replacement indices that meet Regulation Z requirements. For creditors
for HELOCs, including reverse mortgages, and card issuers for credit
card accounts, the rule would facilitate the transition of existing
accounts to an alternative index, beginning around April 2022, well in
advance of LIBOR's anticipated expiration. The rule also would address
change-in-terms notice provisions for HELOCs and credit card accounts
and how they apply to the
[[Page 5328]]
transition away from LIBOR, to ensure that consumers are informed of
the replacement index and any adjusted margin. To facilitate compliance
by card issuers, the rule would address how the rate re-evaluation
provisions applicable to credit card accounts apply to the transition
from LIBOR to a replacement index. The Bureau issued an NPRM in June
2020 and, expects to issue a final rule in January 2022.
Planning for Future Rulemakings
The Bureau is actively reviewing existing regulations. Section
1022(d) of the Dodd-Frank Act requires the Bureau to conduct an
assessment of each significant rule or order adopted by the Bureau
under Federal consumer financial law and publish a report of each
assessment not later than five years after the effective date of the
subject matter or order. The Bureau has decided to conduct an
assessment of a rule implementing the Home Mortgage Disclosure Act,
most of which became effective in January 2018.
The Regulatory Flexibility Act (RFA) also requires the Bureau to
consider the effect on small entities of certain rules it promulgates.
In May 2019, the Bureau published its plan for conducting reviews,
consistent with section 610 of the RFA, of certain regulations which
are believed to have a significant impact on a substantial number of
small entities. Congress specified that the purpose of these reviews is
to determine whether such rules should be continued without change, or
should be amended or rescinded, consistent with the stated objectives
of the applicable statutes, to minimize any significant economic impact
of the rules upon a substantial number of such small entities. In
August 2020, the Bureau commenced its RFA section 610 review of
Regulation Z rules that implement the Credit Card Accountability
Responsibility and Disclosure Act of 2009 (CARD Act). Specifically, the
Bureau reviewed an interim final rule and three final rules published
by the Board from July 2009 to April 2011. After considering the
statutory review factors and public comments, the Bureau determined
that, within the context of this RFA section 610 review, the CARD Act
rules should continue without change at this time. The Bureau found
that there is a continued need for the CARD Act rules to protect
consumers given Congress's purpose in adopting the CARD Act provisions,
and these rules do not overlap with other Federal or State rules. The
Bureau also found the CARD Act rules to be complex; however, this
complexity likely results from the complexity of the CARD Act
provisions themselves and pricing on credit card accounts generally.
Additionally, while some commenters requested changes to the CARD Act
rules, most of these changes would not reduce the significant economic
impact upon a substantial number of small entities (SISNOSE) in a
meaningful way. For the requested changes that would likely reduce the
SISNOSE, the Bureau found these changes would be inconsistent with the
purposes of the CARD Act.
Finally, as required by the Dodd-Frank Act, the Bureau is
continuing to monitor markets for consumer financial products and
services to identify risks to consumers and the proper functioning of
such markets. As discussed in a recent report by the Government
Accountability Office, the Bureau's Division of Research, Markets, and
Regulations and specifically its Markets Office continuously monitor
market developments and risks to consumers. The Bureau also has created
a number of cross-Bureau working groups focused around specific markets
to further advance the Bureau's market monitoring work. The Bureau's
market monitoring work assists in identifying issues for potential
future rulemaking work.
Dated: September 10, 2021.
Susan M. Bernard,
Assistant Director for Regulations, Bureau of Consumer Financial
Protection.
Consumer Financial Protection Bureau--Proposed Rule Stage
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Regulation
Sequence No. Title Identifier No.
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460....................... Small Business Lending 3170-AA09
Data Under The Equal
Credit Opportunity Act.
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Consumer Financial Protection Bureau--Completed Actions
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Regulation
Sequence No. Title Identifier No.
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461....................... Debt Collection Rule...... 3170-AA41
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CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)
Proposed Rule Stage
460. Small Business Lending Data Under the Equal Credit Opportunity Act
Legal Authority: 15 U.S.C. 1691c-2
Abstract: Section 1071 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank Act) amended the Equal Credit
Opportunity Act (ECOA) to require, subject to rules prescribed by the
Bureau, financial institutions to report information concerning credit
applications made by women-owned, minority-owned, and small businesses.
ECOA is a critical law that protects small business owners, including
from unlawful discrimination, in their access to and use of credit.
Section 1071 requires that certain data be collected, maintained, and
reported to the Bureau, including whether the applicant is a women-
owned, minority-owned, or small business; the number of the application
and date the application was received; the type and purpose of the loan
or credit applied for; the amount of credit applied for and approved;
the type of action taken with respect to the application and the date
of such action; the census tract of the applicant's principal place of
business; the gross annual revenue of the business; and the race, sex,
and ethnicity of the principal owners of the business. Section 1071
also provides authority for the Bureau to require any additional data
that the Bureau determines would aid in fulfilling its statutory
purposes. The Bureau may adopt exceptions to any requirement of section
1071 and may exempt any financial institution from its requirements, as
the Bureau deems necessary or appropriate to carry out section 1071's
purposes. The Bureau has been working on this important and complex
rulemaking for a number of years, including through research,
supervisory work, policy development, and engagement seeking comment
and
[[Page 5329]]
information from the public, small business lenders, and small
businesses themselves, including minority- and women-owned small
businesses. The Bureau made significant progress on implementing
section 1071 since the Spring 2021 Unified Agenda was published. On
October 8, a Notice of Proposed Rulemaking (NPRM) was published in the
Federal Register which would, if finalized as proposed, require
financial institutions to report the amount and type of small business
credit applied for and extended, demographic information about small
business credit applicants, and key elements of the price of the credit
offered, among other things. If finalized, the rule would also advance
the goals of promoting racial and economic equity and supporting
underserved, vulnerable, and marginalized communities, in that it would
provide comprehensive small business lending data to help protect small
business owners, including from unlawful discrimination, in their
access to and use of fair and affordable credit. The Bureau's next
action for the section 1071 rulemaking is to review and consider the
comments submitted in response to the proposed rule.
Timetable:
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Action Date FR Cite
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Request for Information............. 05/15/17 82 FR 22318
Request for Information Comment 09/14/17
Period End.
SBREFA Outline...................... 09/15/20
Pre-rule Activity--SBREFA Report.... 12/14/20
NPRM................................ 10/08/21 86 FR 56356
NPRM Comment Period End............. 01/06/22
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Kristine Andreassen, Office of Regulations,
Consumer Financial Protection Bureau, Washington, DC 20552, Phone: 202
435-7700.
RIN: 3170-AA09
CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)
Completed Actions
461. Debt Collection Rule
Legal Authority: 15 U.S.C. 1692l(d)
Abstract: In May 2019, the Bureau issued a Notice of Proposed
Rulemaking (NPRM), which would prescribe rules under Regulation F to
govern the activities of debt collectors, as that term is defined under
the Fair Debt Collection Practices Act (FDCPA). The Bureau proposed,
among other things, to address communications in connection with debt
collection; interpret and apply prohibitions on harassment or abuse,
false or misleading representations, and unfair practices in debt
collection; and clarify requirements for certain consumer-facing debt
collection disclosures. The proposal built on the Bureau's research and
pre-rulemaking activities regarding the debt collection market,
including convening a panel in August 2016 under the Small Business
Regulatory Enforcement Fairness Act (SBREFA) in conjunction with the
Office of Management and Budget and the Small Business Administration's
Chief Counsel for Advocacy. The Bureau also engaged in testing of time-
barred debt disclosures that were not addressed in the May 2019
proposed rule. In early 2020, after completing the testing, the Bureau
issued a supplemental NPRM related to time-barred debt disclosures. In
October 2020, the Bureau issued a final rule that focused primarily on
debt collection communications and addressed a number of other topics,
including imposing record retention requirements and prohibiting the
sale or transfer of certain types of debt. In December 2020, the Bureau
issued a final rule addressing disclosures related to the validation
notice, requiring certain outreach by debt collectors before consumer
reporting, and barring suits or threats of suit on time-barred debt.
Both final rules are scheduled to take effect on November 30, 2021. In
April 2021, in light of the continuation well into 2021 of the
widespread societal disruption caused by the COVID-19 pandemic, the
Bureau issued a NPRM to extend the effective date of both rules by 60
days. After considering the comments received on the NPRM, the Bureau
decided not to extend the effective date and published a Federal
Register notice withdrawing that proposal in September 2021.
Timetable:
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Action Date FR Cite
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ANPRM............................... 11/12/13 78 FR 67847
ANPRM Comment Period Extended....... 01/14/14 79 FR 2384
ANPRM Comment Period End............ 02/10/14
ANPRM Comment Period Extended End... 02/28/14
Pre-Rule Activity--SBREFA Outline... 07/28/16
NPRM................................ 05/21/19 84 FR 23274
NPRM Comment Period Extended........ 08/02/19 84 FR 37806
NPRM Comment Period End............. 08/19/19
NPRM Comment Period Extended End.... 09/18/19
Supplemental NPRM................... 03/03/20 85 FR 12672
Supplemental NPRM Comment Period 03/27/20 85 FR 17299
Extended.
Supplemental NPRM Comment Period 08/04/20
Extended End.
Final Rule 1........................ 11/30/20 85 FR 76734
Final Rule 2--Disclosures........... 01/19/21 86 FR 5766
NPRM--Effective Date Extension...... 04/19/21 86 FR 20334
Effective Date Extension Withdrawn.. 09/01/21 86 FR 48918
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Kristin McPartland, Office of Regulations, Consumer
Financial Protection Bureau, Washington, DC 20552, Phone: 202 435-7700.
RIN: 3170-AA41
[FR Doc. 2021-27972 Filed 1-28-22; 8:45 am]
BILLING CODE 4810-AM-P
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