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Happy Valentine’s Day, Mr. President. Another Executive Order (EO) bites the dust. This time the EO issued for Reducing Regulations and Controlling Regulatory Costs.
According to a memorandum issued by the Office of Information and Regulatory Affairs’ acting Administrator, Dominic Mancini, the requirements outlined in Section 2 of the EO do not apply to all agencies. One agency that is excluded is the CFPB. Other excluded agencies include the Federal Reserve Board, OCC, FDIC, SEC and the NCUA.
What this means is that the CFPB may move forward with rulemaking under Dodd-Frank aimed at controlling and regulating the financial services industry. That may be both good and bad for lenders.
It means that with this OIRA memorandum, the CFPB may continue to move forward with the amendments to the TRID rules for updates and improvement that are needed to clarify certain aspects of the rules. The lending industry has worked hard to bring about many of these rules and believes will help both lenders and consumers. That may be good.
So, in this case, a negative may be a positive for lenders. The question now is: “What might the CFPB have in store for the implementation of new, or extended, financial institution regulations.” That may be bad.
Hopefully, it’s a nice card and a box of chocolates. Happy Valentine’s Day.
Presently, CFPB is working on the Implementation of New Mortgage Servicing Rules as well as, TRID Rules updates and clarifications. These were introduced prior to President Trump’s election and Executive Order. In addition, CFPB has the authority to introduce additional financial institution regulations which are called for under Dodd-Frank.
Wait. The CFPB has been around for years now. If they were going to create new or extended regulations, wouldn’t they have done that in years past? At the very least, in the last few months of the Obama Administration?