This week, the American Financial Services Association (AFSA) responded to a Request for Information on Deregulation issued by the Office of Management and Budget (OMB). The request invited public input on identifying regulations that should be rescinded, particularly those deemed "unnecessary, unlawful, unduly burdensome, or unsound." AFSA's comment urged OMB to review 14 rules from the Consumer Financial Protection Bureau (CFPB), Department of Defense, and Federal Communications Commission.
Simultaneously, the CFPB announced plans to withdraw 67 guidance filings, interpretive rules, policy statements, and advisory opinions. The CFPB noted that these withdrawals are not necessarily permanent as it continues to review all guidance documents in an ongoing process.
The agency was created with broad authorities and little oversight, making it susceptible to overreach. Over recent years, there has been industry concern about rulemaking through informal means rather than formal notice-and-comment processes.
Additionally, the CFPB has withdrawn an auto finance enforcement action along with guidance related to states' authority using the Bureau's powers. Proposed rescissions include procedures for supervisory designation, nonbank registry enforcement actions, adjudication practice rules, and terms and conditions proposals.
These developments align with AFSA's longstanding advocacy for clear regulatory frameworks established through standard procedures. Companies offering consumer financial products seek consistent rules formed through official rulemaking channels.
May 16th, 2025