[Federal Register Volume 83, Number 58 (Monday, March 26, 2018)]
[Proposed Rules]
[Pages 12881-12883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06027]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Chapter X

[Docket No. CFPB-2018-0012]


Request for Information Regarding the Bureau's Inherited 
Regulations and Inherited Rulemaking Authorities

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Request for information.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
seeking comments and information from interested parties to assist the 
Bureau in considering whether, consistent with its statutory authority 
to prescribe rules pursuant to the Federal consumer financial laws, the 
Bureau should amend the regulations or exercise the rulemaking 
authorities that it inherited from certain other Federal agencies.

DATES: Comments must be received by June 25, 2018.

ADDRESSES: You may submit responsive information and other comments, 
identified by Docket No. CFPB-2018-0012, 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-2018-0012 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, all comments received will be posted 
without change to http://www.regulations.gov. In addition, comments 
will be available for public inspection and copying at 1700 G Street 
NW, Washington, DC 20552, on official business days between the hours 
of 10 a.m. and 5 p.m. eastern time. You can make an appointment to 
inspect the documents by telephoning 202-435-7275.
    All 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. Submissions will not be edited to remove any identifying 
or contact information.

FOR FURTHER INFORMATION CONTACT: Thomas L. Devlin and Kristin 
McPartland, Senior Counsels, Office of Regulations, at 202-435-7700. If 
you require this document in an alternative electronic format, please 
contact [email protected].

SUPPLEMENTARY INFORMATION: Congress established the Bureau in the Dodd-
Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) 
and therein set forth the Bureau's purpose, objectives, and 
functions.\1\ Pursuant to that Act, on July 21, 2011, the ``consumer 
financial protection functions'' previously vested in certain other 
Federal agencies transferred to the

[[Page 12882]]

Bureau.\2\ The term ``consumer financial protection function'' is 
defined to include ``all authority to prescribe rules or issue orders 
or guidelines pursuant to any Federal consumer financial law, including 
performing appropriate functions to promulgate and review such rules, 
orders, and guidelines.'' \3\ The Dodd-Frank Act in turn defines 
Federal consumer financial law broadly to include ``the provisions of 
[title X of the Dodd-Frank Act], the enumerated consumer laws, the laws 
for which authorities are transferred under subtitles F and H, and any 
rule or order prescribed by the Bureau under [title X], an enumerated 
consumer law, or pursuant to the authorities transferred under 
subtitles F and H.'' \4\
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    \1\ Public Law 111-203, 124 Stat. 2081 (2010) (codified at 15 
U.S.C. 1693a et seq.). Section 1021 of the Dodd-Frank Act states 
that the Bureau shall seek to implement and, where applicable, 
enforce Federal consumer financial law consistently for the purpose 
of ensuring that all consumers have access to markets for consumer 
financial products and services and that markets for consumer 
financial products and services are fair, transparent, and 
competitive. Section 1021 also authorized the Bureau to exercise its 
authorities under Federal consumer financial law for the purposes of 
ensuring that, with respect to consumer financial products and 
services, five specific objectives are met.
    \2\ 12 U.S.C. 5581.
    \3\ 12 U.S.C. 5581(a)(1).
    \4\ 12 U.S.C. 5481(14).
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    Accordingly, Congress generally transferred to the Bureau 
rulemaking authority for Federal consumer financial laws previously 
vested in certain other Federal agencies, and the Bureau thereafter 
assumed responsibility over the various regulations that these agencies 
had issued under this rulemaking authority (the ``Inherited 
Regulations'').\5\ The Dodd-Frank Act also provided new rulemaking 
authorities to the Bureau under the Federal consumer financial laws. 
Since the Bureau's creation, it has prescribed a number of rules under 
Federal consumer financial law in rulemakings mandated by Congress, as 
well as in discretionary rulemakings. These Bureau-issued rules and the 
new authorities created under the Dodd-Frank Act are referred to 
collectively in this RFI as the ``Adopted Regulations.'' The Adopted 
Regulations have often amended the Inherited Regulations.
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    \5\ The Bureau generally restated these regulations first 
through a series of interim final rules published in the Federal 
Register and subsequently through a final rule. 81 FR 25323 (Apr. 
28, 2016). Bureau rules are generally set forth in title 12, Chapter 
X of the Code of Federal Regulations.
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    The Bureau's Rulemaking Authority. The Dodd-Frank Act states that 
the Bureau is authorized to ``exercise its authorities under Federal 
consumer financial law to administer, enforce, and otherwise implement 
the provisions of Federal consumer financial law.'' \6\ The Dodd-Frank 
Act further authorizes the Director of the Bureau to prescribe rules as 
may be necessary or appropriate to enable the Bureau to administer and 
carry out the purposes and objectives of the Federal consumer financial 
laws, which include enumerated consumer laws as well as provisions of 
the Dodd-Frank Act, and to prevent evasions thereof.\7\
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    \6\ 12 U.S.C. 5512(a).
    \7\ 12 U.S.C. 5512(b)(1).
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    Existing Bureau Work to Examine Inherited Regulations. The Dodd-
Frank Act states that the Bureau is authorized to exercise its 
authorities under Federal consumer financial law for, among other 
objectives, ``ensuring that, with respect to consumer financial 
products and services . . . outdated, unnecessary, or unduly burdensome 
regulations are regularly identified and addressed in order to reduce 
unwarranted regulatory burdens.'' \8\ In 2011 and 2012, the Bureau 
sought and received stakeholders' suggestions to streamline the 
Inherited Regulations.\9\ The Bureau identified and executed several 
burden reduction projects from that undertaking.\10\ More recently, the 
Bureau has established an initiative to review periodically individual 
Inherited Regulations or portions of such regulations. The Bureau is 
beginning the first such review by focusing on subparts B and G of 
Regulation Z, which implement the Truth in Lending Act with respect to 
open-end credit generally and credit cards in particular.\11\
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    \8\ 12 U.S.C. 5511(b)(3).
    \9\ 76 FR 75825 (Dec. 5, 2011).
    \10\ See 79 FR 64057 (Oct. 28, 2014); 78 FR 25818 (May 3, 2013); 
78 FR 18221 (Mar. 26, 2013). In some cases Congress took action 
related to the same topics identified as part of the Bureau's 
streamlining initiative. See, e.g., 81 FR 44801 (July 11, 2016); 78 
FR 18221 (Mar. 26, 2013).
    \11\ See 83 FR 1968, 1970 (Jan. 12, 2018); RIN 3170-AA73.
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Overview of This Request for Information

    The Bureau is using this request for information (RFI) to seek 
public input regarding the substance of the Inherited Regulations, 
including whether the Bureau should issue additional rules. The Bureau 
encourages comments from all interested members of the public. The 
Bureau anticipates that the responding public may include (among 
others) entities and their service providers subject to Bureau rules, 
trade associations that represent these entities, individual consumers, 
consumer advocates, regulators, and researchers or members of academia.
    The Bureau previously issued an RFI regarding its rulemaking 
processes, and plans to issue an RFI about the Bureau's regulatory 
implementation and guidance functions. The Bureau also previously 
issued an RFI regarding the Adopted Regulations. Accordingly, the 
purpose of this RFI is to seek feedback on the content of the Inherited 
Regulations, not the Bureau's rulemaking processes, implementation 
initiatives that occur after the issuance of a final rule, or the 
Adopted Regulations.\12\ Also please note that the Bureau is not 
requesting comment on any pending rulemaking for which the Bureau has 
issued a Notice of Proposed Rulemaking or otherwise solicited public 
comment.
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    \12\ The Adopted Regulations include rulemakings issued by the 
Bureau since its creation, including rules that were adopted 
pursuant to specific instructions from Congress. They also include 
new rulemaking authorities given to the Bureau by the Dodd-Frank Act 
that did not previously exist under the Federal consumer financial 
laws.
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    The Inherited Regulations. The Inherited Regulations comprise the 
statutory authority and regulations that were transferred to the Bureau 
by title X of the Dodd-Frank Act. They include the regulations that the 
Bureau restated in Title 12, Chapter X of the Code of Federal 
Regulations. For clarity, the term ``Inherited Regulations'' also 
includes all rulemaking authority inherited by the Bureau, regardless 
of the extent to which the Bureau's predecessors exercised that 
authority.

Suggested Topics for Commenters

    To allow the Bureau to more effectively evaluate suggestions, the 
Bureau requests that, where possible, comments include:
     Specific suggestions regarding any potential updates or 
modifications to the Inherited Regulations, consistent with the laws 
providing the Bureau with rulemaking authority and the Bureau's 
regulatory and statutory purposes and objectives, and including, in as 
much detail as possible, the nature of the requested change, and 
supporting data or other information on impacts and costs of the 
Inherited Regulations and on the suggested changes thereto; and
     Specific identification of any aspects of the Inherited 
Regulations that should not be modified, consistent with the laws 
providing the Bureau with rulemaking authority and the Bureau's 
regulatory and statutory purposes and objectives, and including, in as 
much detail as possible, supporting data or other information on 
impacts and costs, or information related to consumer and public 
benefit resulting from these rules.
    The following list represents a preliminary attempt by the Bureau 
to identify considerations relevant in determining where modifications 
of the Inherited Regulations or further exercise of the Bureau's 
rulemaking authorities may be appropriate. 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. The Bureau requests that,

[[Page 12883]]

in addressing these questions or others, commenters identify with 
specificity the Bureau rules at issue, providing legal citations to 
specific regulations or statutes where appropriate and available. The 
Bureau invites commenters to identify the products or services that 
would be affected by any recommendations made by those commenters. 
Please feel free to comment on some or all of the questions below and 
on some or all of the Inherited Regulations, but please be sure to 
indicate on which area you are commenting. The Bureau encourages 
commenters to make their best efforts to limit their comments to the 
Inherited Regulations; however, the Bureau will consider all comments 
received under the Inherited Regulations and Adopted Regulations RFIs 
together.
    From all of the suggestions, commenters are requested to offer 
their highest priorities, along with their explanation of how or why 
they have prioritized suggestions. Commenters are asked to single out 
their top priority. Suggestions should focus on revisions that the 
Bureau could implement consistent with its authorities and without 
Congressional action.
    The Bureau is seeking feedback on all aspects of the Inherited 
Regulations, including but not limited to:
    1. Aspects of the Inherited Regulations that:
    a. Should be tailored to particular types of institutions or to 
institutions of a particular size;
    b. Create unintended consequences;
    c. Overlap or conflict with other laws or regulations in a way that 
makes it difficult or particularly burdensome for institutions to 
comply;
    d. Are incompatible or misaligned with new technologies, including 
by limiting providers' ability to deliver, electronically, mandatory 
disclosures or other information that may be relevant to consumers; or
    e. Could be modified to provide consumers greater protection from 
the incidence and effects of identity theft.
    2. Changes the Bureau could make to the Inherited Regulations, 
consistent with its statutory authority, to more effectively meet the 
statutory purposes and objectives set forth in the Federal consumer 
financial laws, as well as the Bureau's predecessor agencies' specific 
goals for the particular Inherited Regulation in the first instance.
    3. Changes the Bureau could make to the Inherited Regulations, 
consistent with its statutory authority, that would advance the 
following statutory purposes and objectives as set forth in section 
1021 of the Dodd-Frank Act:
    a. The statutory purposes set forth in section 1021(a) are:
    i. All consumers have access to markets for consumer financial 
products and services; and
    ii. Markets for consumer financial products and services are fair, 
transparent, and competitive.
    b. The statutory objectives set forth in section 1021(b) are:
    i. Consumers are provided with timely and understandable 
information to make responsible decisions about financial transactions;
    ii. Consumers are protected from unfair, deceptive, or abusive acts 
and practices and from discrimination;
    iii. Outdated, unnecessary, or unduly burdensome regulations are 
regularly identified and addressed in order to reduce unwarranted 
regulatory burdens;
    iv. Federal consumer financial law is enforced consistently in 
order to promote fair competition; and
    v. Markets for consumer financial products and services operate 
transparently and efficiently to facilitate access and innovation.
    4. Pilots, field tests, demonstrations, or other activities that 
the Bureau could launch to better quantify benefits and costs of 
potential revisions to the Inherited Regulations, or make compliance 
with the Inherited Regulations more efficient and effective.
    5. Areas where the Bureau has inherited rulemaking authority, but 
has not exercised it, where rulemaking would be beneficial and align 
with the purposes and objectives of the applicable Federal consumer 
financial laws.

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

     Dated: March 14, 2018.
Mick Mulvaney,
Acting Director, Bureau of Consumer Financial Protection.
[FR Doc. 2018-06027 Filed 3-23-18; 8:45 am]
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