The CFPB today released the attached a Memorandum of Understanding (MOU) with four other federal regulators (FRB, FDIC, NCUA, and OCC), clarifying how the agencies will coordinate their supervisory activities. The MOU is dated May 16, 2012.
As you may recall, section 1025 of the Dodd-Frank Act provides that the Consumer Financial Protection Bureau (CFPB) has exclusive authority to require reports and conduct periodic examinations relating to various consumer financial laws and issues, as to insured depository institutions and their affiliates with more than $10 billion in assets. Similarly, section 1024 provides the CFPB comparable supervisory authority with respect to certain entities that are not insured depository institutions with total assets of $10 billion or more.
However, both sections also require that the CFPB work with the prudential regulators to: (1) coordinate the scheduling of examinations; (2) conduct simultaneous examinations of insured depository institutions with more than $10 billion in assets and their insured depository institution affiliates, unless the institution requests separate examinations; (3) share draft reports of examinations with the other supervising agency, and provide the receiving agency with opportunity to comment on the draft report before it is made final; and (4) take into consideration any concerns raised by the other agency before issuing the CFPB's final report of examination.
Toward these ends, the regulators announced that, under the attached MOU, the agencies will work with each other and share materials concerning:
* Compliance with federal consumer financial laws and certain other federal laws that regulate consumer financial products and services;
* Consumer compliance risk management programs;
* Activities such as underwriting, sales, marketing, servicing, collections, if they are related to consumer financial products or services; and
* Other related matters that the agencies may mutually agree upon.
According to the regulators, "[t]hese coordination undertakings should lead to greater uniformity and efficiencies in supervision and help to minimize regulatory burden on covered depository institutions."
Ralph T. Wutscher
McGinnis Tessitore Wutscher LLP
The Loop Center Building
105 W. Madison Street, 18th Floor
Chicago, Illinois 60602
Direct: (312) 551-9320
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Email: RWutscher@mtwllp.com
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