CFPB July 21 Implementation Date Nearing

July 13, 2011 - The Consumer Financial Protection Bureau’s (CFPB) oversight authority takes effect on July 21.

Created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has examination authority for entities with more than $10 billion in assets. However, without a Senate-confirmed director, the CFPB cannot engage in rulemaking. Special Advisor to the President Elizabeth Warren has led the start up of the agency but the President has yet to nominate a director for Senate confirmation.

The CFPB has taken shape over the last year, hiring examiners and starting projects. Former Massachusetts Commissioner of Banks Steve Antonakes is the CFPB’s assistant director for large bank supervision. His department will oversee the consumer protection exams of 111 banks, thrifts and credit unions representing about 80 percent of U.S. banking assets. Three credit unions have more than $10 billion in assets, including one state-chartered credit union, State Employees’ Credit Union based in Raleigh, North Carolina.

In March, an memorandum of understanding (MOU) was signed by top North Carolina credit union regulator Jerrie Jay and the CFPB for information sharing and regulatory coordination for the consumer protection oversight of State Employees’ Credit Union. NASCUS has met with the CFPB several times to provide education about the state system as the new agency continues its implementation. NASCUS will also facilitate additional MOUs and information sharing agreements with state credit union regulators as necessary.

One of the CFPB’s first projects “Know Before You Owe” is aimed at combining two federally required mortgage disclosures into a single form. The form would combine the federal Truth in Lending Act (TILA) mortgage disclosure and the Real Estate Settlement Procedures Act (RESPA) Good Faith Estimate into one disclosure. In May, the CFPB began testing two alternate prototype forms that are designed to be given to consumers who have just applied for a mortgage loan. 

To learn more about the CFPB, follow this link.