Page 11 - The GSE Report March-April 2018

TRUMP ADMINISTRATION MJARN.U-ARPYR.20210818
• Changing the ureau’s name to the Bureau of Consumer Financial Protection, the official name in the 2010 Dodd Frank Act
• Amending the “Know Before You Owe” mortgage disclosure rule to provide lenders more flexibility to adjust closing cost estimates and pass along cost increases to the borrower
“The CFPB doesn’t exist,” said Mulvaney. “The CFPB has never existed. I’m not sure who made that decision. I think I can guess; she might be in the Senate. If the very first act that someone does when they’re in the Bureau ...is not follow the statute, that probably doesn’t set a good precedent for what’s going to come afterwards.”
In recent testimony before the House Committee on Financial Services, Mulvaney said, “The Bureau is not designed to be accountable and my work there is aimed towards one end goal: to make the Bureau more accountable.” (The MReport, 04/25/18; American Banker, Rachel Witkowski, 04/24/18; American Banker, Kate Berry, 04/26/18)
In January, BCFP Acting Director Mulvaney asked for public comment on the Bureau’s CID process as part of a broad review of the agency’s policies and procedures.
In an April 26 letter to the BCFP, the Financial Services Roundtable, Consumer Bankers Association and Consumer Mortgage Coalition (collectively, the Associations) provided the Bureau the following recommendations:
Initiating Investigations
When the Bureau has supervisory authority over the CID subject, the Associations recommend that the Bureau focus its enforcement activities on issues discovered through the course of its supervisory examinations after the Bureau has had time to closely examine those issues, allowed the institution to respond, and determined no alternative resolution is possible. The Associations recommend increased transparency regarding the basis for escalation to the Office of Enforcement (Enforcement) through standardized publicly available protocols for nature and content of communication to the institution.
We also recommend providing more extensive information to the institution regarding
why a CID has been issued after transfer to Enforcement, and more closely aligning
CID requests, to the extent they are made, with the issues that resulted in referral to Enforcement.
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