CFPB Releases Examination Manual and Guide
Oct. 17, 2011 - The Consumer Financial Protection Bureau (CFPB) released its CFPB Supervision and Examination Manual, the guide for their examiners to use in overseeing companies that provide consumer financial products and services.
The Dodd-Frank Consumer Protection and Wall Street Reform Act of 2010 created the CFPB, a new federal agency exclusively focused on financial services consumer protection. The agency has examination authority for institutions with more than $10 billion in assets and back-up authority with the prudential regulator for those institutions under the $10 billion threshold.
The new manual has three parts. Part 1 describes the supervision and examination process; Part 2 contains examination procedures; and the third part presents templates for documenting information about supervised entities and the examination process, including examination reports. In addition to the manual, the CFPB released its examination procedures for mortgage servicing.
The CFPB intends to examine the largest institutions on a continuous basis and other institutions on a periodic basis. The CFPB currently has examination authority of three credit unions: Navy Federal Credit Union, State Employees' Credit Union (NC, state-chartered) and Pentagon Federal Credit Union.
The CFPB does not yet have a Senate-confirmed Director. The nomination of Richard Cordray, former Ohio attorney general, was recently approved by the Senate Banking Committee but has yet to be approved by the full Senate. To read more about the new CFPB exam manual, follow this link.