CFPB Aims for April for New Payday Lending Underwriting Rule
CFPB officials also say they're still determining whether a rule or guidance is needed to define abusive acts or practices.
The CFPB is reviewing about 190,000 comments on possible changes to the underwriting provisions in its payday lending rule and intends to issue a final rule in April, the agency said in its updated regulatory agenda, released this week.
The agency has delayed the underwriting provisions of the strict payday lending rule that was issued by former Director Richard Cordray, an Obama Administration appointee.
When the Trump Administration took office and Cordray resigned, then-Acting Director Mick Mulvaney and subsequently Director Kathy Kraninger, said they believed the strict rule was too restrictive.
In its updated regulatory agenda, bureau officials also said they are still determining whether a rule or guidance is needed to define abusive acts or practices. Dodd-Frank gave the agency to take action when a financial company engaged in abusive acts or practices, but there is no definite definition of those terms.
The bureau said it also intends to:
- Make changes to its remittance rule, in part, because the temporary exemption that allows institutions to estimate fees and exchange rates is due to expire in July 2020.
- Address issues in connection with loan origination compensation.
- Try to facilitate the use of electronic channels of communication in the origination and servicing of credit card accounts.
- Issue a notice of proposed rulemaking addressing disclosure of Home Mortgage Disclosure Act data in light of consumer privacy concerns.
- Continue to review the possible need to address overdraft issues.