CFPB Can Improve Coordination of Supervisory Activities with State Regulators
The Consumer Financial Protection Bureau (CFPB) and state regulators coordinate well together on supervision activities when they have overlapping jurisdiction, but there could be some improvements, CSBS said in a comment letter on May 21.
In particular, CFPB should coordinate its exam schedule to finish near the same time as state exams, said CSBS in its letter.
The letter is in response to the CFPB’s request for information on its supervision processes.
State regulators made additional recommendations, including suggesting that the CFPB:
- Limit its scope of formal appeals, which could clog the process if unduly expanded;
- Improve processes to streamline information sharing with the Bureau;
- Allow both the Bureau and the states to maintain their own oversight authority with respect to third-party service providers;
- Improve processes for the sharing of potential action and request for response letters, when possible; and
- Continue to recognize and promote the value of its Supervision and Exam manual.
This is the third comment letter CSBS has sent in the past month to the CFPB, which has requested input on all aspects of its statutory and discretionary functions. CSBS also has commented on the Bureau’s Civil Investigative Demands and Enforcement Process activities.
CSBS’s comment letters are available on the policy section of the CSBS website.