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Recent Updates from the CFPB

Michael Christians • August 2, 2021

Rulemaking Agenda

The Consumer Financial Protection Bureau (CFPB) has published its most recent rulemaking agenda which identifies the regulatory matters the agency is currently pursuing. Items on the CFPB’s agenda through the fall of 2021 include:

· Issuing a Notice of Proposed Rulemaking (NPRM) in September to implement Section 1071 of the Dodd-Frank Act. Section 1071 requires financial institutions to collect and report certain information in connection with applications for credit submitted by women-owned, minority-owned, and small businesses

· Considering an NPRM that would prescribe regulations related to Property Assessed Clean Energy (PACE) financing. PACE financing allows a consumer to make energy efficiency and water conservation improvements to their home through a financing mechanism repaid through future property tax assessments

· Pursuing a joint agency rulemaking that would establish quality control standards for automated valuation models (AVMs)

· Issuing a final rule in January 2022 to help facilitate the transition away from the LIBOR index. Remember that the 1-day, 1-month, 6-month and 1-year LIBOR indices will cease publication in June 2023

· Completing a review of the changes made to the Home Mortgage Disclosure Act (HMDA) and Regulation C in 2018

Fair Debt Collection Practices Act (FDCPA)

The CFPB issued two final rules in late 2020 designed to modernize the 40-year-old FDCPA. In April 2021, the agency issued a proposed rule that would have delayed the effective date of these changes until January 29, 2022. However, after further consideration, the Bureau does not believe that such an extension is necessary. As a result, the CFPB will allow the FDCPA changes to take effect on their regularly scheduled effective date, November 30, 2021.

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