The Consumer Financial Protection Bureau (CFPB) appears set to alter its approach to supervision and enforcement, based on a recent memo obtained by the American Financial Services Association (AFSA). The memo highlights a shift in focus towards "pressing threats to consumers, particularly service members and their families and veterans" while reducing involvement in areas managed by state authorities.
The CFPB plans to move its focus towards "the largest banks and depository institutions" while decreasing emphasis on nonbank entities. A key part of the strategy is to reduce the number of oversight "events" by 50%. Fraud involving mortgages, data furnishing under FCRA/Reg. V, FDCPA/Reg. F, and issues like fraudulent overcharges and insufficient consumer information safeguards will be priorities.
Moreover, the bureau intends to limit its role in state-led supervision and enforcement efforts to prevent redundancy. It will closely coordinate with other federal agencies to ensure actions stay within its jurisdiction and avoid unnecessary duplication. Additionally, the CFPB will adopt a "more measured approach" towards enforcing Fair Lending laws, specifically focusing on instances of proven intentional racial discrimination with identified victims.
In parallel, reports suggest Scott Bessent, presumably the next CFPB Director, is conducting meetings with federal banking regulators. This move is seen as an effort to consolidate regulatory oversight and streamline banking policies.
AFSA has pledged to keep tracking these developments closely for any further updates.
April 18th, 2025