On June 23, the Consumer Financial Protection Bureau issued the eighth edition of its "Supervisory Highlights," which covered supervisory activities the Bureau completed between January and April 2015.
The CFPB oversees depository institutions and credit unions with total assets of more than $10 billion, as well as their affiliates. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, 12 U.S.C. §§ 5301 et seq., the Bureau also has supervisory authority over nonbanks – regardless of size – in the following markets: mortgage companies, pay day lenders, and private education leaders
The CFPB also has discretion to define its supervisory authority over "larger participants" in other discrete nonbank markets. So far, the Bureau has extended its authority into the following markets: consumer reporting, consumer debt collection, student loan servicing, international money transfers, and the nonbank automobile market.
In its latest report, the CFPB identified the following residual issues among its supervised entities:
- illegal dual-tracking of foreclosures and loss mitigation applications;
- illegal runarounds with loss mitigation applications;
- disregard of debt collection complaints from consumers;
- accuracy problems at consumer reporting agencies; and
- fair lending violations, including the denial or discouragement of mortgage applications from public assistance recipients
Although it found recurring compliance issues among covered entities, the report also claims that CFPB supervisory resolutions yielded approximately $11.6 million in remediation to roughly 80,000 consumers.
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