The Consumer Financial Protection Bureau (CFPB) has revised its supervisory appeals process to increase options for regulated institutions.
The updates included broadening the rule on which CFPB officials are eligible to evaluate appeals, increasing the number of options for resolving an appeal, expanding what matters are subject to appeal, and other clarifying changes.
The pool of potential members for the appeals committee was expanded to include any CFPB manager who did not participate in the underlying matter being appealed and who has relevant expertise on the issues raised. Before this change, only managers from the office of supervision were eligible. Under the new process, the supervision director will select three CFPB managers who meet the criteria, who will then advise the supervision director on how to resolve the appeal.
The new option for resolving an appeal allows for the matter to be remanded back to supervision staff for consideration of a modified finding, in addition to the existing options of upholding or rescinding the previous determination. Under the new process, institutions are also able to file an appeal of any compliance rating issued to the institution, not only an adverse rating.
“The CFPB examines financial institutions for compliance with federal consumer financial law and can help identify issues before they become systemic or cause significant harm,” the bureau stated. “As with other supervisory agencies, CFPB examinations are confidential. The CFPB periodically publishes Supervisory Highlights, which share summaries of examiners’ findings without naming specific institutions.”
Cover Story: