[Federal Register Volume 81, Number 247 (Friday, December 23, 2016)]
[Proposed Rules]
[Pages 94843-94847]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29921]



[[Page 94843]]

Vol. 81

Friday,

No. 247

December 23, 2016

Part XXIII





 Bureau of Consumer Financial Protection





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Semiannual Regulatory Agenda

  Federal Register / Vol. 81 , No. 247 / Friday, December 23, 2016 / 
Unified Agenda  

[[Page 94844]]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Ch. X


Semiannual Regulatory Agenda

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Semiannual regulatory agenda.

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SUMMARY: The Bureau of Consumer Financial Protection (CFPB or Bureau) 
is publishing this agenda as part of the Fall 2016 Unified Agenda of 
Federal Regulatory and Deregulatory Actions. The CFPB reasonably 
anticipates having the regulatory matters identified below under 
consideration during the period from November 1, 2016 to October 31, 
2017. The next agenda will be published in spring 2017 and will update 
this agenda through spring 2018. Publication of this agenda is in 
accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

DATES: This information is current as of October 19, 2016.

ADDRESSES: Bureau of Consumer Financial Protection, 1700 G Street NW., 
Washington, DC 20552.

FOR FURTHER INFORMATION CONTACT: A staff contact is included for each 
regulatory item listed herein.

SUPPLEMENTARY INFORMATION: The CFPB is publishing its fall 2016 agenda 
as part of the Fall 2016 Unified Agenda of Federal Regulatory and 
Deregulatory Actions, which is coordinated by the Office of Management 
and Budget under Executive Order 12866. The CFPB's participation in the 
Unified Agenda is voluntary. The complete Unified Agenda is available 
to the public at the following Web site: http://www.reginfo.gov.
    Pursuant to the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, Public Law 111-203, 124 Stat. 1376 (Dodd-Frank Act), 
the CFPB has rulemaking, supervisory, enforcement, and other 
authorities relating to consumer financial products and services. These 
authorities include the ability to issue regulations under more than a 
dozen Federal consumer financial laws, which was transferred to the 
CFPB from seven Federal agencies on July 21, 2011. The CFPB is working 
on a wide range of initiatives to address issues in markets for 
consumer financial products and services that are not reflected in this 
notice because the Unified Agenda is limited to rulemaking activities.
    The CFPB reasonably anticipates having the regulatory matters 
identified below under consideration during the period from November 1, 
2016, to October 31, 2017.\1\ Among the Bureau's more significant 
regulatory efforts are the following.
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    \1\ The listing does not include certain routine, frequent, or 
administrative matters. Further, certain of the information fields 
for the listing are not applicable to independent regulatory 
agencies, including the CFPB, and, accordingly, the CFPB has 
indicated responses of ``no'' for such fields.
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Bureau Regulatory Efforts in Various Consumer Markets

    The Bureau is working on a number of rulemakings to address 
important consumer protection issues in a wide variety of markets for 
consumer financial products and services, including mortgages, debt 
collection, credit cards, and installment lending, among others.
    For example, in May 2016, the Bureau issued a Notice of Proposed 
Rulemaking concerning the use of agreements between a covered person 
and a consumer for a consumer financial product or service providing 
for arbitration of any future disputes. The rulemaking follows on a 
report that the Bureau issued to Congress in March 2015, as required by 
the Dodd-Frank Act, as well as on preliminary results of arbitration 
research that were released by the Bureau in December 2013. The 
proposal would prohibit covered providers of certain consumer financial 
products and services from using an arbitration agreement to bar the 
consumer from filing or participating in a class action. Under the 
proposal, companies would still be able to include arbitration clauses 
in their contracts. However, for contracts subject to the proposal, the 
clauses would have to say explicitly that they cannot be used to stop 
consumers from being part of a class action in court. The proposal 
would also require a covered provider that has an arbitration agreement 
and that is involved in arbitration pursuant to a pre-dispute 
arbitration agreement to submit specified arbitral records to the 
Bureau. The deadline for comments on the Notice of Proposed Rulemaking 
was August 22, 2016. As the Bureau considers development of a final 
rule for spring 2017, it is reviewing and considering comments on the 
proposed rule.
    The Bureau also released a Notice of Proposed Rulemaking in June 
2016, to address consumer harms from practices related to payday loans, 
vehicle title loans, and other similar credit products, including 
failure to determine whether consumers have the ability to repay 
without default or re-borrowing and certain payment collection 
practices. The deadline for comments on the Notice of Proposed 
Rulemaking is October 7, 2016. Among other things, the proposal would 
require lenders to make a reasonable determination that the consumer 
has the ability to repay a covered loan before extending credit. It 
would also require lenders to make certain disclosures before 
attempting to collect payments from consumers' accounts and restrict 
lenders from making additional payment collection attempts after two 
consecutive attempts have failed.
    The Bureau also expects to issue a final rule in early fall 2016, 
to create a comprehensive set of consumer protections for prepaid 
financial products, such as general purpose reloadable cards and other 
similar products, which are increasingly being used by consumers in 
place of traditional checking accounts or credit cards. The final rule 
will build off a proposal that the Bureau issued in November 2014, to 
bring prepaid products expressly within the ambit of Regulation E 
(which implements the Electronic Fund Transfer Act) as prepaid accounts 
and to create new provisions specific to such accounts. The proposal 
also included provisions to amend Regulation E and Regulation Z (which 
implements the Truth in Lending Act) to regulate prepaid accounts with 
overdraft services or certain other credit features.
    The Bureau also expects to issue a final rule amending Regulation 
P, which implements the Gramm-Leach-Bliley Act (GLBA) in fall 2016. 
Congress recently amended the GLBA to provide an exception to the 
requirement for financial institutions to deliver annual privacy 
notices when certain conditions are met. On July 11, the Bureau 
published in the Federal Register proposed conforming amendments to 
Regulation P for consistency with the statutory amendment.
    Building on Bureau research and other sources, the Bureau is also 
engaged in policy analysis and further research initiatives in 
preparation for a rulemaking on overdraft programs on checking 
accounts. The CFPB issued a white paper in June 2013, and a report in 
July 2014, based on supervisory data from several large banks that 
highlighted a number of possible consumer protection concerns, 
including how consumers opt in to overdraft coverage for ATM and one-
time debit card transactions, overdraft coverage limits, transaction 
posting order practices, overdraft and insufficient funds fee 
structure, and involuntary account closures. The CFPB is continuing to 
engage in additional research, including qualitative

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consumer testing initiatives relating to the opt-in process.
    The Bureau is also engaged in rulemaking activities regarding debt 
collection practices. Debt collection continues to be the single 
largest source of complaints to the Federal Government of any industry. 
Building on the Bureau's November 2013, Advance Notice of Proposed 
Rulemaking, the Bureau released materials in July 2016, in advance of 
convening a panel under the Small Business Regulatory Enforcement 
Fairness Act (SBREFA) in conjunction with the Office of Management and 
Budget and the Small Business Administration's Chief Counsel for 
Advocacy to consult with small businesses that may be affected by the 
policy proposals under consideration. This SBREFA process focuses on 
companies that are considered ``debt collectors'' under the Fair Debt 
Collection Practices Act; the Bureau expects to convene a separate 
SBREFA proceeding focusing on companies that collect their own debts in 
2017. The CFPB also continues to analyze the results of a survey to 
obtain information from consumers about their experiences with debt 
collection and plans to publish a report in the coming months.
    The Bureau is also continuing rulemaking activities that will 
further establish the Bureau's nonbank supervisory authority by 
defining larger participants of certain markets for consumer financial 
products and services. Larger participants of such markets, as the 
Bureau defines by rule, are subject to the Bureau's supervisory 
authority. The Bureau expects that its next larger participant 
rulemaking will focus on the markets for consumer installment loans and 
vehicle title loans for purposes of supervision. The Bureau is also 
considering whether rules to require registration of these or other 
non-depository lenders would facilitate supervision, as has been 
suggested to the Bureau by both consumer advocates and industry groups.
    The Bureau is also continuing to develop research on other critical 
markets to help implement statutory directives and to assess whether 
regulation of other consumer financial products and services may be 
warranted. For example, the Bureau is starting its work to implement 
section 1071 of the Dodd-Frank Act, which amends the Equal Credit 
Opportunity Act to require financial institutions to report information 
concerning credit applications made by women-owned, minority-owned, and 
small businesses. The Bureau is focusing on outreach and research to 
develop its understanding of the players, products, and practices in 
business lending markets and of the potential ways to implement section 
1071. The CFPB then expects to begin developing proposed regulations 
concerning the data to be collected and determining the appropriate 
procedures and privacy protections needed for information-gathering and 
public disclosure under this section.

Implementing Dodd-Frank Act Mortgage Protections

    The Bureau is also continuing efforts to implement critical 
consumer protections under the Dodd-Frank Act to guard against mortgage 
market practices that contributed to the nation's most significant 
financial crisis in several decades. Since 2013, the Bureau has issued 
regulations as directed by the Dodd-Frank Act to implement certain 
consumer protections for mortgage originations and servicing, integrate 
various federal mortgage disclosures, and amend mortgage reporting 
requirements for institutions covered under the Home Mortgage 
Disclosure Act. The Bureau engages in intensive implementation work for 
each new rule or rule change to facilitate understanding and 
implementation of rulemaking requirements, including follow-up 
rulemaking where warranted.
    For example, the Bureau issued a Notice of Proposed Rulemaking in 
July 2016, to make clarifications and provide further regulatory 
guidance concerning its rule integrating several Federal mortgage 
disclosures that consumers receive in connection with applying for and 
closing on a mortgage loan under the Truth in Lending Act and the Real 
Estate Settlement Procedures Act. The integration and streamlining of 
the disclosures is mandated under the Dodd-Frank Act and the rule took 
effect in October 2015. The rule is the cornerstone of the Bureau's 
broader ``Know Before You Owe'' mortgage initiative.
    In August 2016, the Bureau issued a final rule to amend various 
provisions of the mortgage servicing rules in Regulation X (which 
implements RESPA) and Regulation Z. Among other amendments, the final 
rule clarifies the applicability of certain provisions when a borrower 
is in bankruptcy or has invoked cease communication rights under the 
Fair Debt Collection Practices Act (FDCPA), enhances loss mitigation 
requirements, and extends the protections of the mortgage servicing 
rules to confirmed successors in interest. The Bureau conducted 
consumer testing of certain disclosures on sample forms provided in the 
final rule.
    Concurrently with the final rule, the Bureau also issued an 
interpretive rule under the FDCPA, relating to servicers' compliance 
with certain mortgage servicing provisions as amended by the final 
rule. Most provisions of the final rule and interpretive rule take 
effect 12 months after publication in the Federal Register. The 
provisions relating to bankruptcy periodic statements and successors in 
interest take effect 18 months after publication in the Federal 
Register. The Bureau will work to conduct outreach with industry to 
monitor and facilitate implementation of the final rule.
    The Bureau is also working intensely to conduct outreach with 
industry and coordinate with other agencies to monitor and facilitate 
implementation of its rule to implement Dodd-Frank amendments to HMDA. 
The Bureau has already released a small entity compliance guide in 
connection with the rule, which was finalized in October 2015. Certain 
elements of the rule take effect in January 2017, and most new data 
collection requirements begin in January 2018. The Bureau is working to 
streamline and modernize HMDA data collection and reporting processes 
in conjunction with implementation.

Further Planning

    Finally, the Bureau is continuing to conduct outreach and research 
to assess issues in various other markets for consumer financial 
products and services beyond those discussed herein. As this work 
continues, the Bureau will evaluate possible policy responses, 
including possible rulemaking actions, taking into account the critical 
need for and effectiveness of various policy tools. The Bureau will 
update its regulatory agenda in spring 2017, to reflect the results of 
this further prioritization and planning.

Kelly Thompson Cochran,
Assistant Director for Regulations, Bureau of Consumer Financial 
Protection.

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           Consumer Financial Protection Bureau--Prerule Stage
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                                                           Regulation
       Sequence No.                    Title             Identifier No.
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456.......................  Business Lending Data              3170-AA09
                             (Regulation B).
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        Consumer Financial Protection Bureau--Proposed Rule Stage
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                                                           Regulation
       Sequence No.                    Title             Identifier No.
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457.......................  Payday Loans and Deposit           3170-AA40
                             Advance Products.
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         Consumer Financial Protection Bureau--Final Rule Stage
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                                                           Regulation
       Sequence No.                    Title             Identifier No.
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458.......................  The Expedited Funds                3170-AA31
                             Availability Act
                             (Regulation CC).
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CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)

Prerule Stage

456. Business Lending Data (Regulation B)

    Legal Authority: 15 U.S.C. 1691c-2
    Abstract: Section 1071 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Dodd-Frank Act) amends the Equal Credit 
Opportunity Act (ECOA) to require financial institutions to report 
information concerning credit applications made by women-owned, 
minority-owned, and small businesses. The amendments to ECOA made by 
the Dodd-Frank Act require that certain data be collected and 
maintained, including the number of the application and date the 
application was received; the type and purpose of loan or credit 
applied for; the amount of credit applied for and approved; the type of 
action taken with regard to each application and the date of such 
action; the census tract of the principal place of business; the gross 
annual revenue of the business; and the race, sex, and ethnicity of the 
principal owners of the business. The Dodd-Frank Act also provides 
authority for the CFPB to require any additional data that the CFPB 
determines would aid in fulfilling the purposes of this section. The 
Bureau is focusing on outreach and research to develop its 
understanding of the players, products, and practices in business 
lending markets and of the potential ways to implement section 1071. 
The CFPB then expects to begin developing proposed regulations 
concerning the data to be collected and determining the appropriate 
procedures and privacy protections needed for information-gathering and 
public disclosure under this section.
    Timetable:

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               Action                    Date            FR Cite
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Prerule Activities..................   03/00/17
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    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Elena Grigera Babinecz, Office of Regulations, 
Consumer Financial Protection Bureau, Phone: 202 435-7700.
    RIN: 3170-AA09

CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)

Proposed Rule Stage

457. Payday Loans and Deposit Advance Products

    Legal Authority: 12 U.S.C. 5531; 12 U.S.C. 5532; 12 U.S.C. 5512; 12 
U.S.C. 5551
    Abstract: The Bureau is conducting a rulemaking to address consumer 
harms from practices related to payday loans and other similar credit 
products, including failure to determine whether consumers have the 
ability to repay without default or reborrowing and certain payment 
collection practices. The proposal would cover two categories of loans. 
First, the proposal generally would cover loans with a term of 45 days 
or less. Second, the proposal generally would cover loans with a term 
greater than 45 days, provided that they: (1) Have an all-in annual 
percentage rate greater than 36 percent; and (2) either are repaid 
directly from the consumer's account or income or are secured by the 
consumer's vehicle. For both categories of covered loans, the proposal 
would identify it as an abusive and unfair practice for a lender to 
make a covered loan without reasonably determining that the consumer 
has the ability to repay the loan. Among other things, the proposal 
would require that, before making a covered loan, a lender must 
reasonably determine that the consumer has the ability to repay the 
loan. The Bureau released a Notice of Proposed Rulemaking in June 2016, 
and is accepting comments on the proposal through October 7, 2016.
    Timetable:

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               Action                    Date            FR Cite
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NPRM................................   07/22/16  81 FR 47864
RFI.................................   07/22/16  81 FR 47781
NPRM Comment Period End.............   10/07/16
RFI Comment Period End..............   11/07/16
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    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Mark Morelli, Office of Regulations, Consumer 
Financial Protection Bureau, Phone: 202 435-7700.
    RIN: 3170-AA40

CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)

Final Rule Stage

458. The Expedited Funds Availability Act (Regulation CC)

    Legal Authority: 12 U.S.C. 4001 et seq.
    Abstract: The Expedited Funds Availability Act (EFA Act), 
implemented by Regulation CC, governs availability of funds after a 
check deposit and check collection and return processes. Section 1086 
of the Dodd-Frank Wall Street Reform and Consumer Protection Act 
amended the EFA Act to provide the CFPB with joint rulemaking

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authority with the Board of Governors of the Federal Reserve System 
(Board) over certain consumer-related EFA Act provisions. The Board 
proposed amendments to Regulation CC in March 2011, to facilitate the 
banking industry's ongoing transition to fully-electronic interbank 
check collection and return. The Board's proposal includes some 
provisions that are subject to the CFPB's joint rulemaking authority, 
including the period for funds availability and revising model form 
disclosures. In addition, in December 2013, the Board proposed revised 
amendments to certain Regulation CC provisions that are not subject to 
the CFPB's authority and extended the comment period to May 2014. The 
CFPB will work with the Board to issue jointly a final rule that 
includes provisions within the CFPB's authority.
    Timetable:

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               Action                    Date            FR Cite
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NPRM................................   03/25/11  76 FR 16862
NPRM Comment Period End.............   06/03/11
Final Rule..........................   11/00/16
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    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Joseph Baressi, Office of Regulations, Consumer 
Financial Protection Bureau, Phone: 202 435-7700.
    RIN: 3170-AA31

[FR Doc. 2016-29921 Filed 12-22-16; 8:45 am]
BILLING CODE 4810-AM-P