[Federal Register Volume 87, Number 20 (Monday, January 31, 2022)]
[Proposed Rules]
[Pages 5326-5329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-27972]



[[Page 5325]]

Vol. 87

Monday,

No. 20

January 31, 2022

Part XXI





 Bureau of Consumer Financial Protection





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Semiannual Regulatory Agenda

  Federal Register / Vol. 87 , No. 20 / Monday, January 31, 2022 / UA: 
Reg Flex Agenda  

[[Page 5326]]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Chapter 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 (Bureau) is 
publishing this agenda as part of the Fall 2021 Unified Agenda of 
Federal Regulatory and Deregulatory Actions. The Bureau reasonably 
anticipates having the regulatory matters identified below under 
consideration during the period from November 1, 2021 to October 31, 
2022. The next agenda will be published in Spring 2022 and will update 
this agenda through Spring 2023. 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 November 1, 2021.

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. If you require this document in an 
alternative electronic format, please contact 
[email protected].

SUPPLEMENTARY INFORMATION: The Bureau is publishing its Fall 2021 
Agenda as part of the Fall 2021 Unified Agenda of Federal Regulatory 
and Deregulatory Actions, which is coordinated by the Office of 
Management and Budget under Executive Order 12866. The agenda lists the 
regulatory matters that the Bureau reasonably anticipates having under 
consideration during the period from November 1, 2021 to October 31, 
2022, as described further below.\1\ The complete Unified Agenda is 
available to the public at the following website: http://www.reginfo.gov.
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    \1\ The listing does not include certain routine, frequent, or 
administrative matters. The Bureau is reporting information for this 
Unified Agenda in a manner consistent with past practice.
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    Pursuant to the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, Public Law 111-203, 124 Stat. 1376 (Dodd-Frank Act), 
the Bureau has rulemaking, supervisory, enforcement, consumer 
education, and other authorities relating to consumer financial 
products and services. These authorities include the authority to issue 
regulations under more than a dozen Federal consumer financial laws, 
which transferred to the Bureau from seven Federal agencies on July 21, 
2011. The Bureau's general purpose, as specified in section 1021(a) of 
the Dodd-Frank Act, is to implement and 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.
    In addition, section 1021 of the Dodd-Frank Act specifies the 
objectives of the Bureau, including ensuring that, with respect to 
consumer financial products and services, consumers are provided with 
timely and understandable information to make responsible decisions 
about financial transactions; consumers are protected from unfair, 
deceptive, or abusive acts and practices and from discrimination; 
outdated, unnecessary, or unduly burdensome regulations are regularly 
identified and addressed in order to reduce unwarranted regulatory 
burdens; that Federal consumer financial law is enforced consistently, 
without regard to the status of a person as a depository institution, 
in order to promote fair competition; and markets for consumer 
financial products and services operate transparently and efficiently 
to facilitate access and innovation.
    The Senate recently confirmed the Bureau's new permanent Director. 
In this regulatory agenda the Bureau is prioritizing the continuation 
of certain ongoing rulemakings that further the Bureau's consumer 
financial protection mission and help to advance the country's economic 
recovery from the financial crisis related to the COVID-19 pandemic. 
The Bureau also continues to prioritize work that promotes racial and 
economic equity and supports underserved, vulnerable and marginalized 
communities by, among other things, facilitating access to fair and 
affordable credit. The Bureau expects that its new Director, will 
assess what regulatory actions the Bureau should prioritize to best 
further its consumer protection mission and that the Spring 2022 Agenda 
will reflect his priorities.

Continuation of Bureau Regulatory Efforts in Various Consumer Markets

    The Bureau is continuing to work 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, small business lending, and consumers' access to their own 
financial information, among others. The Bureau is mindful of how 
critically important these rulemakings are in light of the dire 
financial circumstances so many Americans continue to find themselves, 
particularly in light of the ongoing COVID-19 pandemic and the 
resulting financial crisis, which has affected the financial well-being 
of millions of consumers and small businesses. The Bureau is also 
mindful that the data show that these hardships fall disproportionately 
on individuals, families, and small businesses in communities of color.
    For example, section 1071 of the Dodd-Frank Act amended the Equal 
Credit Opportunity Act to require, subject to rules prescribed by the 
Bureau, financial institutions to collect, report, and make public 
certain information concerning credit applications made by women-owned, 
minority-owned, and small businesses. Congress enacted section 1071 for 
the purpose of (1) Facilitating enforcement of fair lending laws and 
(2) enabling communities, governmental entities, and creditors to 
identify business and community development needs and opportunities for 
women-owned, minority-owned, and small businesses.
    Bureau research shows that small businesses play a key role in 
fostering community development and fueling economic growth. It also 
shows that women-owned and minority-owned small businesses, in 
particular, play an important role in supporting their local 
communities. To contribute meaningfully to the U.S. economy and to 
their local community, small businesses--and especially women-owned and 
minority-owned small businesses--need access to credit to smooth 
business cash flows from current operations and to allow entrepreneurs 
to take advantage of opportunities for growth. This access to credit 
will be especially important as the nation works to rebuild the economy 
in light of the COVID-19 pandemic and resulting economic impacts. The 
Bureau's section 1071 rule, if finalized, would be critical to enabling 
the Bureau to protect small business owners, including from unlawful 
discrimination, in their access to and use of credit.
    The Bureau has been working on this important and complex 
rulemaking for a number of years, including through research, 
supervisory work, policy development, and engagement seeking comment 
and information from the public, small business lenders, and small 
businesses themselves, including minority- and women-owned small 
businesses. The Bureau made significant progress on implementing 
section 1071

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since the Spring 2021 Unified Agenda was published. On October 8, a 
Notice of Proposed Rulemaking (NPRM) was published in the Federal 
Register which, if finalized as proposed, would, among other things, 
require financial institutions to report the amount and type of small 
business credit applied for, and extended, demographic information 
about small business credit applicants, and key elements of the price 
of the credit offered. The Bureau's next action for the section 1071 
rulemaking is to review and consider the comments submitted in response 
to the proposed rule.
    The Bureau is also working on a rulemaking to address the 
availability of consumer financial account data in electronic form, 
which has helped consumers understand their finances and make better-
informed financial decisions in a variety of ways. Research has 
indicated that the availability of certain consumer financial account 
data may improve underwriting and expand access to credit. At the same 
time, the means by which these data are accessed, transmitted, stored, 
and used by financial institutions of all kinds can implicate 
significant privacy, security, racial equity, and other consumer 
financial protection concerns. Furthermore, consumer access to their 
own financial data can foster improved transparency in credit decisions 
that affect consumers, including small and very small businesses 
relying on consumer credit access, and provide some protection against 
poor credit ratings based on serious errors in credit reports. This 
ability of consumers to access this information is particularly 
important at a time when financial institutions are increasingly using 
``alternative data'' in making credit decisions. The Bureau supports 
innovation and believes that appropriate implementation of section 1033 
can lead to competitive, consumer-friendly markets, while recognizing 
the importance of ensuring the safety and security of consumer account 
data. Section 1033 of the Dodd-Frank Act provides that, subject to 
rules prescribed by the Bureau, covered persons must make available to 
consumers, upon request, transaction data and other information 
concerning a consumer financial product or service that the consumer 
obtains from a covered person. Section 1033 also states that the Bureau 
shall prescribe by rule standards to promote the development and use of 
standardized formats for information made available to consumers. The 
Bureau has taken a number of steps to gather information and 
perspectives from the public, financial institutions, consumer advocacy 
groups, and others concerning current practices with respect to 
financial data access and data sharing and to learn more about this 
complex and rapidly-changing market. Most recently, in November 2020, 
the Bureau published an Advance Notice of Proposed Rulemaking (ANPRM) 
concerning the implementation of section 1033, and accepted comments 
until February 2021. The Bureau is reviewing comments received in 
response to the ANPRM and is considering those comments, as well as 
ongoing market monitoring efforts, as it assesses potential next steps, 
including whether a Small Business Review Panel is required pursuant to 
the Regulatory Flexibility Act.
    Next, the Bureau is continuing its work to implement section 307 of 
the Economic Growth, Regulatory Relief, and Consumer Protection Act of 
2018 (EGRRCPA), which amends the Truth in Lending Act (TILA) to mandate 
that the Bureau prescribe certain regulations relating to ``Property 
Assessed Clean Energy'' (PACE) financing. PACE financing is a tool for 
consumers to finance certain improvements to residential real property. 
It is authorized by State and local governments and is typically 
available for projects promoting energy and water conservation, among 
other public policy goals identified in state statute. PACE is a hybrid 
product, with characteristics of both home equity lending and real 
property taxes. Like home equity loans, PACE obligations arise through 
a voluntary contract and are secured by real property. But, under State 
law, they are billed and repaid as special property tax assessments and 
typically secured by a lien with equal priority to real property taxes. 
As defined by EGRRCPA section 307, PACE financing results in a tax 
assessment on a consumer's real property and covers the costs of home 
improvements. EGRRCPA section 307 states that the Bureau's PACE 
regulations shall carry out the purposes of TILA's ability-to-repay 
(ATR) requirements for residential mortgage loans and apply TILA's 
general civil liability provision for violations of the ATR 
requirements. The regulations must ``account for the unique nature'' of 
PACE financing. Section 307 of the EGRRCPA also specifically authorizes 
the collection of data and information necessary to support a PACE 
rulemaking. In March 2019, the Bureau released an ANPRM and is 
continuing to engage with stakeholders and collect information for the 
rulemaking, including by collecting quantitative data on the effect of 
PACE on consumers' financial outcomes.
    The Bureau is also participating in interagency rulemaking 
processes with the Board of Governors of the Federal Reserve System 
(Board), the Office of the Comptroller of the Currency, the Federal 
Deposit Insurance Corporation, the National Credit Union 
Administration, and the Federal Housing Finance Agency to develop 
regulations to implement the amendments made by the Dodd-Frank Act to 
the Financial Institutions Reform, Recovery, and Enforcement Act of 
1989 (FIRREA) concerning automated valuation models. The FIRREA 
amendments require implementing regulations for quality control 
standards for automated valuation models (AVMs). These standards are 
designed to ensure a high level of confidence in the estimates produced 
by the valuation models, protect against the manipulation of data, seek 
to avoid conflicts of interest, require random sample testing and 
reviews, and account for any other such factor that the Agencies 
determine to be appropriate. The Agencies will continue to work to 
develop a proposed rule to implement the Dodd-Frank Act's AVM 
amendments to FIRREA.
    The Bureau will be bringing to a close its rulemaking to address 
the anticipated expiration of the LIBOR index, which the UK Financial 
Conduct Authority has stated that it cannot guarantee publication 
beyond June 2023. This rulemaking is important for millions of 
consumers who have adjustable-rate mortgages, credit cards, student 
loans, reverse mortgages, home equity lines of credit (HELOCs), or 
other consumer products that are tied to the LIBOR index. When final, 
the rulemaking would help to ensure that any changes to an index 
underlying these loans as a result of the transition to a different 
index due to the discontinuation of LIBOR are done by industry in an 
orderly, transparent, and fair manner. The Bureau's work is designed to 
facilitate compliance by open-end and closed-end creditors and to 
lessen the financial impact to consumers by providing examples of 
replacement indices that meet Regulation Z requirements. For creditors 
for HELOCs, including reverse mortgages, and card issuers for credit 
card accounts, the rule would facilitate the transition of existing 
accounts to an alternative index, beginning around April 2022, well in 
advance of LIBOR's anticipated expiration. The rule also would address 
change-in-terms notice provisions for HELOCs and credit card accounts 
and how they apply to the

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transition away from LIBOR, to ensure that consumers are informed of 
the replacement index and any adjusted margin. To facilitate compliance 
by card issuers, the rule would address how the rate re-evaluation 
provisions applicable to credit card accounts apply to the transition 
from LIBOR to a replacement index. The Bureau issued an NPRM in June 
2020 and, expects to issue a final rule in January 2022.

Planning for Future Rulemakings

    The Bureau is actively reviewing existing regulations. Section 
1022(d) of the Dodd-Frank Act requires the Bureau to conduct an 
assessment of each significant rule or order adopted by the Bureau 
under Federal consumer financial law and publish a report of each 
assessment not later than five years after the effective date of the 
subject matter or order. The Bureau has decided to conduct an 
assessment of a rule implementing the Home Mortgage Disclosure Act, 
most of which became effective in January 2018.
    The Regulatory Flexibility Act (RFA) also requires the Bureau to 
consider the effect on small entities of certain rules it promulgates. 
In May 2019, the Bureau published its plan for conducting reviews, 
consistent with section 610 of the RFA, of certain regulations which 
are believed to have a significant impact on a substantial number of 
small entities. Congress specified that the purpose of these reviews is 
to determine whether such rules should be continued without change, or 
should be amended or rescinded, consistent with the stated objectives 
of the applicable statutes, to minimize any significant economic impact 
of the rules upon a substantial number of such small entities. In 
August 2020, the Bureau commenced its RFA section 610 review of 
Regulation Z rules that implement the Credit Card Accountability 
Responsibility and Disclosure Act of 2009 (CARD Act). Specifically, the 
Bureau reviewed an interim final rule and three final rules published 
by the Board from July 2009 to April 2011. After considering the 
statutory review factors and public comments, the Bureau determined 
that, within the context of this RFA section 610 review, the CARD Act 
rules should continue without change at this time. The Bureau found 
that there is a continued need for the CARD Act rules to protect 
consumers given Congress's purpose in adopting the CARD Act provisions, 
and these rules do not overlap with other Federal or State rules. The 
Bureau also found the CARD Act rules to be complex; however, this 
complexity likely results from the complexity of the CARD Act 
provisions themselves and pricing on credit card accounts generally. 
Additionally, while some commenters requested changes to the CARD Act 
rules, most of these changes would not reduce the significant economic 
impact upon a substantial number of small entities (SISNOSE) in a 
meaningful way. For the requested changes that would likely reduce the 
SISNOSE, the Bureau found these changes would be inconsistent with the 
purposes of the CARD Act.
    Finally, as required by the Dodd-Frank Act, the Bureau is 
continuing to monitor markets for consumer financial products and 
services to identify risks to consumers and the proper functioning of 
such markets. As discussed in a recent report by the Government 
Accountability Office, the Bureau's Division of Research, Markets, and 
Regulations and specifically its Markets Office continuously monitor 
market developments and risks to consumers. The Bureau also has created 
a number of cross-Bureau working groups focused around specific markets 
to further advance the Bureau's market monitoring work. The Bureau's 
market monitoring work assists in identifying issues for potential 
future rulemaking work.

    Dated: September 10, 2021.
Susan M. Bernard,
Assistant Director for Regulations, Bureau of Consumer Financial 
Protection.

        Consumer Financial Protection Bureau--Proposed Rule Stage
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                                                           Regulation
       Sequence No.                    Title             Identifier No.
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460.......................  Small Business Lending             3170-AA09
                             Data Under The Equal
                             Credit Opportunity Act.
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         Consumer Financial Protection Bureau--Completed Actions
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                                                           Regulation
       Sequence No.                    Title             Identifier No.
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461.......................  Debt Collection Rule......         3170-AA41
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CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)

Proposed Rule Stage

460. Small Business Lending Data Under the Equal Credit Opportunity Act

    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) amended the Equal Credit 
Opportunity Act (ECOA) to require, subject to rules prescribed by the 
Bureau, financial institutions to report information concerning credit 
applications made by women-owned, minority-owned, and small businesses. 
ECOA is a critical law that protects small business owners, including 
from unlawful discrimination, in their access to and use of credit. 
Section 1071 requires that certain data be collected, maintained, and 
reported to the Bureau, including whether the applicant is a women-
owned, minority-owned, or small business; the number of the application 
and date the application was received; the type and purpose of the loan 
or credit applied for; the amount of credit applied for and approved; 
the type of action taken with respect to the application and the date 
of such action; the census tract of the applicant's principal place of 
business; the gross annual revenue of the business; and the race, sex, 
and ethnicity of the principal owners of the business. Section 1071 
also provides authority for the Bureau to require any additional data 
that the Bureau determines would aid in fulfilling its statutory 
purposes. The Bureau may adopt exceptions to any requirement of section 
1071 and may exempt any financial institution from its requirements, as 
the Bureau deems necessary or appropriate to carry out section 1071's 
purposes. The Bureau has been working on this important and complex 
rulemaking for a number of years, including through research, 
supervisory work, policy development, and engagement seeking comment 
and

[[Page 5329]]

information from the public, small business lenders, and small 
businesses themselves, including minority- and women-owned small 
businesses. The Bureau made significant progress on implementing 
section 1071 since the Spring 2021 Unified Agenda was published. On 
October 8, a Notice of Proposed Rulemaking (NPRM) was published in the 
Federal Register which would, if finalized as proposed, require 
financial institutions to report the amount and type of small business 
credit applied for and extended, demographic information about small 
business credit applicants, and key elements of the price of the credit 
offered, among other things. If finalized, the rule would also advance 
the goals of promoting racial and economic equity and supporting 
underserved, vulnerable, and marginalized communities, in that it would 
provide comprehensive small business lending data to help protect small 
business owners, including from unlawful discrimination, in their 
access to and use of fair and affordable credit. The Bureau's next 
action for the section 1071 rulemaking is to review and consider the 
comments submitted in response to the proposed rule.
    Timetable:

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               Action                    Date            FR Cite
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Request for Information.............   05/15/17  82 FR 22318
Request for Information Comment        09/14/17
 Period End.
SBREFA Outline......................   09/15/20
Pre-rule Activity--SBREFA Report....   12/14/20
NPRM................................   10/08/21  86 FR 56356
NPRM Comment Period End.............   01/06/22
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    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Kristine Andreassen, Office of Regulations, 
Consumer Financial Protection Bureau, Washington, DC 20552, Phone: 202 
435-7700.
    RIN: 3170-AA09

CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)

Completed Actions

461. Debt Collection Rule

    Legal Authority: 15 U.S.C. 1692l(d)
    Abstract: In May 2019, the Bureau issued a Notice of Proposed 
Rulemaking (NPRM), which would prescribe rules under Regulation F to 
govern the activities of debt collectors, as that term is defined under 
the Fair Debt Collection Practices Act (FDCPA). The Bureau proposed, 
among other things, to address communications in connection with debt 
collection; interpret and apply prohibitions on harassment or abuse, 
false or misleading representations, and unfair practices in debt 
collection; and clarify requirements for certain consumer-facing debt 
collection disclosures. The proposal built on the Bureau's research and 
pre-rulemaking activities regarding the debt collection market, 
including convening a panel in August 2016 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. The Bureau also engaged in testing of time-
barred debt disclosures that were not addressed in the May 2019 
proposed rule. In early 2020, after completing the testing, the Bureau 
issued a supplemental NPRM related to time-barred debt disclosures. In 
October 2020, the Bureau issued a final rule that focused primarily on 
debt collection communications and addressed a number of other topics, 
including imposing record retention requirements and prohibiting the 
sale or transfer of certain types of debt. In December 2020, the Bureau 
issued a final rule addressing disclosures related to the validation 
notice, requiring certain outreach by debt collectors before consumer 
reporting, and barring suits or threats of suit on time-barred debt. 
Both final rules are scheduled to take effect on November 30, 2021. In 
April 2021, in light of the continuation well into 2021 of the 
widespread societal disruption caused by the COVID-19 pandemic, the 
Bureau issued a NPRM to extend the effective date of both rules by 60 
days. After considering the comments received on the NPRM, the Bureau 
decided not to extend the effective date and published a Federal 
Register notice withdrawing that proposal in September 2021.
    Timetable:

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               Action                    Date            FR Cite
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ANPRM...............................   11/12/13  78 FR 67847
ANPRM Comment Period Extended.......   01/14/14  79 FR 2384
ANPRM Comment Period End............   02/10/14
ANPRM Comment Period Extended End...   02/28/14
Pre-Rule Activity--SBREFA Outline...   07/28/16
NPRM................................   05/21/19  84 FR 23274
NPRM Comment Period Extended........   08/02/19  84 FR 37806
NPRM Comment Period End.............   08/19/19
NPRM Comment Period Extended End....   09/18/19
Supplemental NPRM...................   03/03/20  85 FR 12672
Supplemental NPRM Comment Period       03/27/20  85 FR 17299
 Extended.
Supplemental NPRM Comment Period       08/04/20
 Extended End.
Final Rule 1........................   11/30/20  85 FR 76734
Final Rule 2--Disclosures...........   01/19/21  86 FR 5766
NPRM--Effective Date Extension......   04/19/21  86 FR 20334
Effective Date Extension Withdrawn..   09/01/21  86 FR 48918
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    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Kristin McPartland, Office of Regulations, Consumer 
Financial Protection Bureau, Washington, DC 20552, Phone: 202 435-7700.
    RIN: 3170-AA41

[FR Doc. 2021-27972 Filed 1-28-22; 8:45 am]
BILLING CODE 4810-AM-P