Effective April 1 the CFPB rescinded its exercise of supervisory and enforcement discretion during the pandemic and announced its intent to carry out its supervisory and enforcement authority consistent with the statutory purpose and objectives of the Bureau. Furthermore, when conducting exams and other supervisory activities, the Bureau would consider the circumstances banks might have faced in performing good faith efforts in assisting consumers.
Formerly the Bureau considered staffing and resource challenges confronting the financial institution when considering supervisory and enforcement actions. Now the Bureau has concluded circumstances have changed and believes financial institutions have adjusted operations by doing things like adopting remote operations with the result some in-person operations in conjunction with remote working have resumed thereby making the previous considerations unnecessary.
Additionally, the Bureau believes that companies have had sufficient time to adapt to the pandemic and should be able to comply with the law and respond to enforcement actions or supervisory activities.
To fulfill its statutory obligations, the Bureau has made it a priority to direct its supervisory, enforcement and other tools for the prevention of harm to consumers. Therefore, it is important that institutions adhere to consumer protection requirements and that the Bureau use its supervisory and enforcement powers to their full extent using a risk-based approach consistent with the full authority afforded by Congress and the statutory purpose and objectives of the Bureau.
If your institution needs help preparing for the renewed regulatory environment, please contact us Preiss&Associates.