[Federal Register Volume 83, Number 34 (Tuesday, February 20, 2018)]
[Notices]
[Pages 7166-7168]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03358]


=======================================================================
-----------------------------------------------------------------------

BUREAU OF CONSUMER FINANCIAL PROTECTION

[Docket No. CFPB-2018-0004]


Request for Information Regarding the Bureau's Supervision 
Program

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice and request for information.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
seeking comments and information from interested parties to assist the 
Bureau in assessing the overall efficiency and effectiveness of its 
Supervision Program, and, consistent with the law, considering whether 
any changes to the program would be appropriate.

DATES: Comments must be received by May 21, 2018.

[[Page 7167]]


ADDRESSES: You may submit responsive information and other comments, 
identified by Docket No. CFPB-2018-0004, by any of the following 
methods:
     Electronic: Go to http://www.regulations.gov. Follow the 
instructions for submitting comments.
     Email: [email protected]. Include Docket 
No. CFPB-2018-0004 in the subject line of the message.
     Mail: Comment Intake, Consumer Financial Protection 
Bureau, 1700 G Street NW, Washington, DC 20552.
     Hand Delivery/Courier: Comment Intake, Consumer Financial 
Protection Bureau, 1700 G Street NW, Washington, DC 20552.
    Instructions: The Bureau encourages the early submission of 
comments. All submissions must include the document title and docket 
number. Please note the number of the topic on which you are commenting 
at the top of each response (you do not need to address all topics). 
Because paper mail in the Washington, DC area and at the Bureau is 
subject to delay, commenters are encouraged to submit comments 
electronically. In general, comments received will be posted without 
change to http://www.regulations.gov, with exceptions including those 
noted below. In addition, comments will be available for public 
inspection and copying at 1700 G St NW, Washington, DC 20552, on 
official business days between the hours of 10 a.m. and 5 p.m. eastern 
standard time. You can make an appointment to inspect the documents by 
telephoning 202-435-7275.
    Submissions in response to this request for information, including 
attachments and other supporting materials, will become part of the 
public record and subject to public disclosure. Proprietary information 
or sensitive personal information, such as account numbers or Social 
Security numbers, or names of other individuals should not be included.
    Commenters should also refrain from submitting confidential 
supervisory information (CSI), as defined in 12 CFR 1070.2(i). If 
discussing interactions on an examination, commenters should speak in 
generalities, and should refrain from describing the content of 
supervisory communications or the results of specific exams. Commenters 
may wish to submit input anonymously or through a representative if 
associating their name with their public comment would disclose the 
fact that they have been examined by the Bureau or the results of a 
particular exam. The Bureau reserves the right to redact or refrain 
from publishing CSI consistent with 12 CFR 1070.41 et seq.

FOR FURTHER INFORMATION CONTACT: For general inquiries and submission 
process questions, please call Brian Shearer, Counsel, at (202) 435-
7611.

SUPPLEMENTARY INFORMATION: The Bureau has supervisory authority over 
insured depository institutions and credit unions with total assets 
over $10 billion and their affiliates, as well as non-depository 
financial institutions, regardless of size, in certain specific markets 
including mortgage companies (originators, brokers, servicers, and 
offerors of loan modifications or foreclosure relief services), payday 
lenders and private education lenders. The Bureau also has supervisory 
authority over non-depository larger participants of other markets as 
the Bureau defines by rule. To date, this includes larger participants 
in the consumer reporting, debt collection, student loan servicing, 
international money transfer, and automobile finance markets. 
Additionally, the Bureau has authority over service providers of the 
above referenced supervised entities, and service providers to a 
substantial number of depository institutions and credit unions with 
total assets of $10 billion or less. More detail regarding the Bureau's 
supervisory authority can be found principally at 12 U.S.C. 5514-5516 
and 12 CFR parts 1090 and 1091.
    The Bureau is, as described below, issuing this request for 
information seeking public comment on how best to achieve meaningful 
burden reduction or other improvement to the processes used by the 
Bureau to supervise for compliance with Federal consumer financial law 
(Supervision Program) while continuing to meet the Bureau's statutory 
and regulatory objectives and ensuring a fair and transparent process 
for supervised entities.

Overview of This Request for Information

    The Bureau is using this request for information to seek public 
input regarding its Supervision Program. The Bureau's ability to 
supervise entities is an essential part of the Bureau's statutory 
mission of enforcing Federal consumer financial laws. The Bureau 
engages in supervisory activities in accordance with applicable law and 
in furtherance of its statutory mandate. The Bureau understands, 
however, that the Bureau's supervisory activities can impose burdens on 
entities. The Bureau encourages comments from all interested members of 
the public. The Bureau anticipates that the responding public may 
include supervised entities or companies supervised by other agencies, 
compliance professionals or members of the bar who represent these 
entities, individual consumers, consumer advocates, regulators, and 
researchers, or members of academia.

Suggested Topics for Commenters

    To allow the Bureau to evaluate suggestions more effectively, the 
Bureau requests that, where possible, comments include:
     Specific suggestions regarding any potential updates or 
modifications to the Bureau's Supervision Program, consistent with the 
Bureau's statutory objectives, and including, in as much detail as 
possible (though without disclosing CSI), potential updates or 
modifications, supporting data or other information on impacts and 
costs, or information concerning alignment with the processes of other 
agencies with similar authorities; and
     Specific identification of any aspects of the Bureau's 
Supervision Program that should not be modified, consistent with the 
Bureau's statutory objectives, and including supporting data or other 
information on impacts and costs, or information concerning alignment 
with the processes of other agencies with similar authorities.
    The following list represents a preliminary attempt by the Bureau 
to identify elements of Bureau processes related to its Supervision 
Program that may be deserving of more immediate focus. This non-
exhaustive list is meant to assist in the formulation of comments and 
is not intended to restrict the issues that may be addressed. In 
addressing these topics or others, the Bureau requests that commenters 
identify with specificity the Bureau regulations or practices at issue, 
providing legal citations where appropriate and available. Please feel 
free to comment on some or all of the topics below, but please be sure 
to indicate on which area you are commenting. As noted in the 
instructions above, please refrain from revealing CSI in your public 
comment.
    The Bureau is seeking feedback on all aspects of its Supervision 
Program, including but not limited to:
    1. The timing, frequency, and scope of supervisory exams.
    2. The timing, method or process used by the Bureau to collect 
information and documents from a supervised entity prior to the 
commencement of an examination. Typically, the Bureau sends an 
examination Information Request (IR) to a supervised entity prior to 
the commencement of an examination. An IR is a list of information and 
documents that the supervised entity is asked to provide to the Bureau 
for off-site review or to make available when examiners are onsite at

[[Page 7168]]

the entity. An IR is typically sent to an entity at least 60 days prior 
to the onsite start of an examination.
    3. The type and volume of information and documents requested in 
IRs.
    4. The effectiveness and accessibility of the CFPB Supervision and 
Examination Manual (Exam Manual). The Exam Manual provides internal 
direction to supervisory staff, including summaries of statutes and 
regulations and specific examination procedures for use by examiners in 
conducting exams. It is published on the Bureau's website to promote 
transparency and assist the public in understanding how the Bureau 
oversees supervised entities.
    5. The efficiency and effectiveness of onsite examination work. 
Typically, while onsite, examination teams may review documents and 
data, hold meetings with management, conduct interviews with staff, 
make observations, and conduct transaction testing.
    6. The effectiveness of Supervision's communications when potential 
violations are identified, including the usefulness and content of the 
potential action and request for response (PARR) letter. A PARR letter 
provides an entity with notice of preliminary findings of conduct that 
may violate Federal consumer financial laws and advises the entity that 
the Bureau is considering taking supervisory action or a public 
enforcement action based on the potential violations identified in the 
letter. Supervision invites the entity to respond to the PARR letter 
within 14 days and to set forth in the response any reasons of fact, 
law or policy why the Bureau should not take action against the entity. 
The Bureau often permits extensions of the response time when 
requested.
    7. The clarity, organization, and quality of communications that 
report the results of supervisory activities, including oral 
communications from examiners and Supervisory Letters and Examination 
Reports.
    8. The clarity of matters requiring attention (MRA) and the 
reasonability of timing requirements to satisfy MRAs. An MRA is used to 
address violation(s) of Federal consumer financial law or compliance 
management weaknesses. MRAs often require a written response to the 
Bureau and will include a due date for completion.
    9. The process for appealing supervisory findings.
    10. The use of third parties contracted by supervised entities to 
conduct assessments specified in MRAs, or to assess the sufficiency of 
completion of an MRA.
    11. The usefulness of Supervisory Highlights to share findings and 
promote transparency. The Bureau periodically publishes Supervisory 
Highlights to apprise the public about its examination program, 
including the concerns that it finds during the course of its work.
    12. The manner and extent to which the Bureau can and should 
coordinate its supervisory activity with Federal and state supervisory 
agencies, including through use of simultaneous exams, where feasible 
and consistent with statutory directives.

    Authority: 12 U.S.C. 5511(c).

    Dated: February 12, 2018.
Mick Mulvaney,
Acting Director, Bureau of Consumer Financial Protection.
[FR Doc. 2018-03358 Filed 2-16-18; 8:45 am]
 BILLING CODE 4810-AM-P