The Consumer Financial Protection Bureau, as it continues to establish its standing in the regulatory arena, proposed a rule Thursday on how it would notify a nonbank company of possible supervision.
The recently formed agency said the process would apply to a nonbank that the CFPB thinks may pose a risk to consumers and thus require supervision. Entities already under the auspices of the agency, including mortgage, payday and student loan lenders, would not be affected.
The propose rule, not yet open for public comment, also sets out how a nonbank could respond both orally and in writing.
“This is an important step in the development of our nonbank supervision program,” CFPB Director Richard Cordray said in a news release. “This proposal allows us to reach nonbanks that we would not other supervise, while providing industry with a streamlined process that is fair and efficient.”
This would not, the CFPB said, set forth new “substantive consumer protection requirements on any nonbank entity.”
Dodd-Frank Act, which formed the CFPB, doesn’t require a public proposal on these procedures, according to the agency.
Click here for the full text of the proposal.
— Andrew Scoggin