Consumer Bureau Seeking Input on Regulating Nonbanks
Credit union executives who want to make recommendations on how the Consumer Financial Protection Bureau regulates nonbank entities, such as nonbank mortgage companies, payday lenders, and private education lenders, can file comment letters with the bureau.
The bureau, which is scheduled to begin operating on July 21, is seeking comments on questions such as how large firms must be to be included in the regulation and whether there should be across-the-board measurements or should they vary based on the size of the market.
“Consumers deserve the peace of mind that financial companies – both banks and nonbanks – are following the rules,” said Elizabeth Warren, point person in setting up the bureau. “The CFPB will be able to examine companies that have never been subject to federal oversight to ensure that no one is gaining an unfair advantage by breaking the law. This will ultimately create fair competition, better product offerings, and more transparent markets for consumers.’’
The financial overhaul bill passed by Congress last year created the bureau and gave it authority to regulate nonbank entities. Credit unions and banks pushed hard for that provision of the rule, arguing that those types of firms don’t have to abide by the same rigorous oversight that regulated firms do.
Comments are due 45 days after the CFPB publishes them in the Federal Register.
Here is the bureau’s advance notice of proposed rulemaking.