Rescission of Statement of Policy on Supervisory and Enforcement Practices Regarding the Fair Credit Reporting Act and Regulation V in Light of the CARES Act, 17695-17696 [2021-06967]
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Federal Register / Vol. 86, No. 64 / Tuesday, April 6, 2021 / Rules and Regulations
Specifically, the Statement provided
that the Bureau, until further notice, did
not intend to take supervisory or
enforcement action against land
developers subject to ILSA and
Regulation J for:
• Delays in filing annual reports of
activity with the Bureau, which
Regulation J requires within 30 days of
the annual anniversary of the effective
date of a developer’s initial statement of
record (12 CFR 1010.310), provided that
developers are making good faith efforts
to file these reports within a reasonable
time; and
• Delays in filing financial statements
with the Bureau, which Regulation J
requires within120 days of the close of
a developer’s fiscal year (12 CFR
1010.212(d)), provided that developers
are making good faith efforts to file
these reports within a reasonable time.
The Bureau hereby rescinds, as of
April 1, 2021, the Statement and
provides guidance as to how land
developers should now meet this
obligation.
The Statement expressed the Bureau’s
recognition of the serious impact of the
COVID–19 pandemic on consumers and
on the operations of many entities,
including land developers subject to
ILSA. The Bureau issued the Statement
to provide land developers with
flexibility and reduce administrative
burden. With regard to the filing of the
noted annual reports of activity and
financial statements, the Bureau
believes that land developers have had
sufficient time to adapt to the pandemic
and should now be able to file annual
reports of activity and financial
statements without the flexibility
afforded under the Statement. The
Bureau notes that immediately
following the stay-at-home orders issued
by States and other jurisdictions, there
was a drop-off in ILSA filings with the
Bureau. As States and other
jurisdictions have rescinded and
modified stay-at-home orders over the
course of the pandemic, the Bureau
notes that land developers have
resumed filing of annual reports of
activity and financial statements
without significant delays. In addition,
because the Statement did not create
binding legal obligations on the Bureau
or create or confer any substantive rights
on external parties, it did not create any
reasonable reliance interests for
industry participants. Additionally, the
Bureau never intended the Statement to
be permanent.
The Bureau rescinds the Statement
and reminds land developers subject to
ILSA and Regulation J to resume:
• Filing annual reports of activity
with the Bureau, which Regulation J
VerDate Sep<11>2014
17:01 Apr 05, 2021
Jkt 253001
requires within 30 days of the annual
anniversary of the effective date of a
developer’s initial statement of record
(12 CFR 1010.310), and
• Filing financial statements with the
Bureau, which Regulation J requires
within 120 days of the close of a
developer’s fiscal year (12 CFR
1010.212(d)).
The Bureau does not intend to take
supervisory or enforcement action
against land developers subject to ILSA
for delays in filing annual reports of
activity or financial statements with the
Bureau, who make any such delayed
submission by April 30, 2021 for the
time period that the Statement was in
effect beginning April 27, 2020 through
April 30, 2021.
Regulatory Requirements
The Statement constituted a general
statement of policy exempt from the
notice and comment rulemaking
requirements of the Administrative
Procedure Act (APA). It was intended to
provide information regarding the
Bureau’s general plans to exercise its
supervisory and enforcement discretion
and did not impose any legal
requirements on external parties, nor
did it create or confer any substantive
rights on external parties that could be
enforceable in any administrative or
civil proceeding. This rescission
likewise is a general statement of policy
exempt from the notice and comment
rulemaking requirements of the APA. It
is intended to provide information
regarding the Bureau’s general plans to
exercise its supervision and
enforcement discretion and does not
impose any legal requirements on
external parties or create or confer any
substantive rights on external parties
that could be enforceable in any
administrative or civil proceedings. No
notice of proposed rulemaking was
originally required in issuing the
Statement, and it is not required in
issuing this rescission. The Regulatory
Flexibility Act also does not require an
initial or final regulatory flexibility
analysis for this rescission. The Bureau
has also determined that the rescission
of the Statement does not impose any
new or revise any existing
recordkeeping, reporting, or disclosure
requirements on covered entities or
members of the public that would be
collections of information requiring
approval by the Office of Management
and Budget under the Paperwork
Reduction Act.
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
17695
Dated: March 29, 2021.
David Uejio,
Acting Director, Bureau of Consumer
Financial Protection.
[FR Doc. 2021–06968 Filed 4–5–21; 8:45 am]
BILLING CODE 4810–AM–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1022
Rescission of Statement of Policy on
Supervisory and Enforcement
Practices Regarding the Fair Credit
Reporting Act and Regulation V in
Light of the CARES Act
Bureau of Consumer Financial
Protection.
ACTION: Rescission of statement of
policy.
AGENCY:
The Bureau of Consumer
Financial Protection (Bureau) is
rescinding the Statement on
Supervisory and Enforcement Practices
Regarding the Fair Credit Reporting Act
and Regulation V in Light of the CARES
Act.
DATES: This rescission is applicable on
April 1, 2021.
FOR FURTHER INFORMATION CONTACT:
Mehul Madia, Division of Supervision,
Enforcement, and Fair Lending, at (202)
435–7104. If you require this document
in an alternative electronic format,
please contact CFPB_Accessibility@
cfpb.gov.
SUMMARY:
On April
1, 2020, the Bureau issued a statement
entitled, ‘‘Statement on Supervisory and
Enforcement Practices Regarding the
Fair Credit Reporting Act and
Regulation V in Light of the CARES
Act’’ (Statement), regarding the Bureau’s
exercise of its supervisory and
enforcement discretion in enforcing the
Fair Credit Reporting Act (FCRA) and
Regulation V.1 Specifically, the
statement highlights furnishers’
responsibilities under the Coronavirus
Aid, Relief, and Economic Security Act
(CARES Act) and informs consumer
reporting agencies and furnishers of the
Bureau’s flexible supervisory and
enforcement approach during the
COVID–19 pandemic regarding
compliance with FCRA and Regulation
V. As part of that flexible approach, the
Bureau also stated that it intended to
consider the circumstances that entities
face as a result of the pandemic and
their good faith efforts to comply with
SUPPLEMENTARY INFORMATION:
1 https://files.consumerfinance.gov/f/documents/
cfpb_credit-reporting-policy-statement_cares-act_
2020-04.pdf.
E:\FR\FM\06APR1.SGM
06APR1
khammond on DSKJM1Z7X2PROD with RULES
17696
Federal Register / Vol. 86, No. 64 / Tuesday, April 6, 2021 / Rules and Regulations
their statutory and regulatory
obligations.
The Bureau hereby rescinds, as of
April 1, 2021, the portion of the
Statement that sets forth the Bureau’s
flexible supervisory and enforcement
approach during the pandemic
regarding compliance with FCRA and
Regulation V, and announces its intent
to exercise its supervisory and
enforcement authority consistent with
the Dodd-Frank Act and FCRA and with
the full authority afforded by Congress
consistent with the statutory purpose
and objectives of the Bureau. This
rescission does not apply to the portion
of the Statement that is under the
heading ‘‘Furnishing Consumer
Information Impacted by COVID–19.’’
The Statement expressed the Bureau’s
recognition of the impact of the COVID–
19 pandemic on the operations of many
consumer reporting agencies and
furnishers, including staffing and
related resource challenges confronting
consumer reporting agencies and
furnishers and their counsel. The
Bureau has concluded that since release
of this statement such circumstances
have changed. Since March 2020 and
over the course of the COVID–19
pandemic, consumer reporting agencies
and furnishers, have adjusted operations
by, for example, shifting to a remote
mode of operation. As States and other
jurisdictions have rescinded and
modified stay-at-home orders over the
course of the pandemic, the Bureau has
learned that many entities have resumed
some level of in-person operations and,
in many instances combined with more
robust remote capabilities, have
demonstrated improved business
continuity.
With regard to the temporary
flexibility announced in the Statement,
the Bureau believes that consumer
reporting agencies and furnishers have
had sufficient time to adapt to the
pandemic and should be able to
regularly meet their obligations under
FCRA and Regulation V. In addition,
because the Statement did not create
binding legal obligations on the Bureau
or create or confer any substantive rights
on external parties, it did not create any
reasonable reliance interests for
industry participants.
The Bureau continues to encourage
institutions to meet the financial
services needs of their customers
affected by the COVID–19 pandemic.2
2 See, e.g., Interagency Statement on Loan
Modifications and Reporting for Financial
Institutions Working with Customers Affected by the
Coronavirus (Revised) (April 7, 2020); Joint
Statement on Supervisory and Enforcement
Practices Regarding the Mortgage Servicing Rules in
Response to the COVID–19 Emergency and the
VerDate Sep<11>2014
17:01 Apr 05, 2021
Jkt 253001
The COVID–19 pandemic is a national
emergency that threatens the financial
well-being of millions of Americans,
with particularly dire effects to
communities of color. As the pandemic
continues to unfold, compliance with
consumer law has never been more
important. We thus expect that
institutions will adhere to consumer
protection requirements, in their
interactions with consumers. The
Bureau’s statutory purposes include
‘‘ensuring . . . that markets for
consumer financial products and
services are fair, transparent, and
competitive.’’ 12 U.S.C. 5511(a). The
information from consumer reports is
used to make many kinds of important
decisions, including whether a
consumer can borrow money or how
much he or she will pay in interest to
finance a home, a car, or a higher
education. Consumer reporting
information is also commonly used for
other purposes too, beyond credit, such
as to determine if consumers can rent
housing or obtain insurance and, if so,
at what price. In short, accurate
consumer reporting has a profound
influence on the lives of consumers and
whether they will be able to take
advantage of certain opportunities.
Declining to cite conduct that is a
violation of FCRA, and Regulation V
based on the articulated principles in
the Statement may skew the consumer
financial marketplace, to the detriment
of market participants who do not act in
violation. To fulfill its statutory
mandate, the Bureau has made it a
priority to direct its supervisory,
enforcement, and other tools to the
prevention of harm to consumers from
unlawful acts and practices.
It is therefore more important than
ever that institutions adhere to
consumer protection and consumer
reporting requirements and that the
Bureau use its supervisory and
enforcement tools to the full extent and
with the full flexibility afforded by
Congress. Accordingly, the Bureau
hereby rescinds as of April 1, 2021 the
portion of the Statement that sets forth
the Bureau’s flexible supervisory and
enforcement approach during the
pandemic regarding compliance with
FCRA and Regulation V.3 Instead, in its
CARES Act (April 3, 2020); Joint Press Release:
Agencies provide additional information to
encourage financial institutions to work with
borrowers affected by COVID–19 (March 22, 2020);
Joint Press Release: Agencies encourage financial
institutions to meet financial needs of customers
and members affected by coronavirus (March 9,
2020).
3 This rescission does not apply to the portion of
the Statement that is under the heading ‘‘Furnishing
Consumer Information Impacted by COVID–19.’’
The Bureau does not intend to cite in an
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
discretion, the Bureau intends to
exercise its supervisory and
enforcement authority consistent with
the Dodd-Frank Act and with the full
authority afforded by Congress
consistent with the statutory purpose
and objectives of the Bureau.
Regulatory Requirements
The Statement constituted a general
statement of policy exempt from the
notice and comment rulemaking
requirements of the Administrative
Procedure Act (APA). It was intended to
provide information regarding the
Bureau’s general plans to exercise its
supervisory and enforcement discretion
and did not impose any legal
requirements on external parties, nor
did it create or confer any substantive
rights on external parties that could be
enforceable in any administrative or
civil proceeding. This rescission
likewise is a general statement of policy
exempt from the notice and comment
rulemaking requirements of the APA. It
is intended to provide information
regarding the Bureau’s general plans to
exercise its supervision and
enforcement discretion and does not
impose any legal requirements on
external parties or create or confer any
substantive rights on external parties
that could be enforceable in any
administrative or civil proceedings. No
notice of proposed rulemaking was
originally required in issuing the
Statement and it is not required in
issuing this rescission. The Regulatory
Flexibility Act also does not require an
initial or final regulatory flexibility
analysis for this rescission. The Bureau
has also determined that the rescission
of the Statement does not impose any
new or revise any existing
recordkeeping, reporting, or disclosure
requirements on covered entities or
members of the public that would be
collections of information requiring
approval by the Office of Management
and Budget under the Paperwork
Reduction Act.
Dated: March 29, 2021.
David Uejio,
Acting Director, Bureau of Consumer
Financial Protection.
[FR Doc. 2021–06967 Filed 4–5–21; 8:45 am]
BILLING CODE 4810–AM–P
examination or initiate an enforcement action
against any entity that did not comply with the
FCRA and Regulation V requirements as described
in the Statement between April 1, 2020, and March
31, 2021.
E:\FR\FM\06APR1.SGM
06APR1
]]>Agencies
[Federal Register Volume 86, Number 64 (Tuesday, April 6, 2021)]
[Rules and Regulations]
[Pages 17695-17696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06967]
-----------------------------------------------------------------------
BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Part 1022
Rescission of Statement of Policy on Supervisory and Enforcement
Practices Regarding the Fair Credit Reporting Act and Regulation V in
Light of the CARES Act
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Rescission of statement of policy.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is
rescinding the Statement on Supervisory and Enforcement Practices
Regarding the Fair Credit Reporting Act and Regulation V in Light of
the CARES Act.
DATES: This rescission is applicable on April 1, 2021.
FOR FURTHER INFORMATION CONTACT: Mehul Madia, Division of Supervision,
Enforcement, and Fair Lending, at (202) 435-7104. If you require this
document in an alternative electronic format, please contact
[email protected].
SUPPLEMENTARY INFORMATION: On April 1, 2020, the Bureau issued a
statement entitled, ``Statement on Supervisory and Enforcement
Practices Regarding the Fair Credit Reporting Act and Regulation V in
Light of the CARES Act'' (Statement), regarding the Bureau's exercise
of its supervisory and enforcement discretion in enforcing the Fair
Credit Reporting Act (FCRA) and Regulation V.\1\ Specifically, the
statement highlights furnishers' responsibilities under the Coronavirus
Aid, Relief, and Economic Security Act (CARES Act) and informs consumer
reporting agencies and furnishers of the Bureau's flexible supervisory
and enforcement approach during the COVID-19 pandemic regarding
compliance with FCRA and Regulation V. As part of that flexible
approach, the Bureau also stated that it intended to consider the
circumstances that entities face as a result of the pandemic and their
good faith efforts to comply with
[[Page 17696]]
their statutory and regulatory obligations.
---------------------------------------------------------------------------
\1\ https://files.consumerfinance.gov/f/documents/cfpb_credit-reporting-policy-statement_cares-act_2020-04.pdf.
---------------------------------------------------------------------------
The Bureau hereby rescinds, as of April 1, 2021, the portion of the
Statement that sets forth the Bureau's flexible supervisory and
enforcement approach during the pandemic regarding compliance with FCRA
and Regulation V, and announces its intent to exercise its supervisory
and enforcement authority consistent with the Dodd-Frank Act and FCRA
and with the full authority afforded by Congress consistent with the
statutory purpose and objectives of the Bureau. This rescission does
not apply to the portion of the Statement that is under the heading
``Furnishing Consumer Information Impacted by COVID-19.''
The Statement expressed the Bureau's recognition of the impact of
the COVID-19 pandemic on the operations of many consumer reporting
agencies and furnishers, including staffing and related resource
challenges confronting consumer reporting agencies and furnishers and
their counsel. The Bureau has concluded that since release of this
statement such circumstances have changed. Since March 2020 and over
the course of the COVID-19 pandemic, consumer reporting agencies and
furnishers, have adjusted operations by, for example, shifting to a
remote mode of operation. As States and other jurisdictions have
rescinded and modified stay-at-home orders over the course of the
pandemic, the Bureau has learned that many entities have resumed some
level of in-person operations and, in many instances combined with more
robust remote capabilities, have demonstrated improved business
continuity.
With regard to the temporary flexibility announced in the
Statement, the Bureau believes that consumer reporting agencies and
furnishers have had sufficient time to adapt to the pandemic and should
be able to regularly meet their obligations under FCRA and Regulation
V. In addition, because the Statement did not create binding legal
obligations on the Bureau or create or confer any substantive rights on
external parties, it did not create any reasonable reliance interests
for industry participants.
The Bureau continues to encourage institutions to meet the
financial services needs of their customers affected by the COVID-19
pandemic.\2\ The COVID-19 pandemic is a national emergency that
threatens the financial well-being of millions of Americans, with
particularly dire effects to communities of color. As the pandemic
continues to unfold, compliance with consumer law has never been more
important. We thus expect that institutions will adhere to consumer
protection requirements, in their interactions with consumers. The
Bureau's statutory purposes include ``ensuring . . . that markets for
consumer financial products and services are fair, transparent, and
competitive.'' 12 U.S.C. 5511(a). The information from consumer reports
is used to make many kinds of important decisions, including whether a
consumer can borrow money or how much he or she will pay in interest to
finance a home, a car, or a higher education. Consumer reporting
information is also commonly used for other purposes too, beyond
credit, such as to determine if consumers can rent housing or obtain
insurance and, if so, at what price. In short, accurate consumer
reporting has a profound influence on the lives of consumers and
whether they will be able to take advantage of certain opportunities.
Declining to cite conduct that is a violation of FCRA, and Regulation V
based on the articulated principles in the Statement may skew the
consumer financial marketplace, to the detriment of market participants
who do not act in violation. To fulfill its statutory mandate, the
Bureau has made it a priority to direct its supervisory, enforcement,
and other tools to the prevention of harm to consumers from unlawful
acts and practices.
---------------------------------------------------------------------------
\2\ See, e.g., Interagency Statement on Loan Modifications and
Reporting for Financial Institutions Working with Customers Affected
by the Coronavirus (Revised) (April 7, 2020); Joint Statement on
Supervisory and Enforcement Practices Regarding the Mortgage
Servicing Rules in Response to the COVID-19 Emergency and the CARES
Act (April 3, 2020); Joint Press Release: Agencies provide
additional information to encourage financial institutions to work
with borrowers affected by COVID-19 (March 22, 2020); Joint Press
Release: Agencies encourage financial institutions to meet financial
needs of customers and members affected by coronavirus (March 9,
2020).
---------------------------------------------------------------------------
It is therefore more important than ever that institutions adhere
to consumer protection and consumer reporting requirements and that the
Bureau use its supervisory and enforcement tools to the full extent and
with the full flexibility afforded by Congress. Accordingly, the Bureau
hereby rescinds as of April 1, 2021 the portion of the Statement that
sets forth the Bureau's flexible supervisory and enforcement approach
during the pandemic regarding compliance with FCRA and Regulation V.\3\
Instead, in its discretion, the Bureau intends to exercise its
supervisory and enforcement authority consistent with the Dodd-Frank
Act and with the full authority afforded by Congress consistent with
the statutory purpose and objectives of the Bureau.
---------------------------------------------------------------------------
\3\ This rescission does not apply to the portion of the
Statement that is under the heading ``Furnishing Consumer
Information Impacted by COVID-19.'' The Bureau does not intend to
cite in an examination or initiate an enforcement action against any
entity that did not comply with the FCRA and Regulation V
requirements as described in the Statement between April 1, 2020,
and March 31, 2021.
---------------------------------------------------------------------------
Regulatory Requirements
The Statement constituted a general statement of policy exempt from
the notice and comment rulemaking requirements of the Administrative
Procedure Act (APA). It was intended to provide information regarding
the Bureau's general plans to exercise its supervisory and enforcement
discretion and did not impose any legal requirements on external
parties, nor did it create or confer any substantive rights on external
parties that could be enforceable in any administrative or civil
proceeding. This rescission likewise is a general statement of policy
exempt from the notice and comment rulemaking requirements of the APA.
It is intended to provide information regarding the Bureau's general
plans to exercise its supervision and enforcement discretion and does
not impose any legal requirements on external parties or create or
confer any substantive rights on external parties that could be
enforceable in any administrative or civil proceedings. No notice of
proposed rulemaking was originally required in issuing the Statement
and it is not required in issuing this rescission. The Regulatory
Flexibility Act also does not require an initial or final regulatory
flexibility analysis for this rescission. The Bureau has also
determined that the rescission of the Statement does not impose any new
or revise any existing recordkeeping, reporting, or disclosure
requirements on covered entities or members of the public that would be
collections of information requiring approval by the Office of
Management and Budget under the Paperwork Reduction Act.
Dated: March 29, 2021.
David Uejio,
Acting Director, Bureau of Consumer Financial Protection.
[FR Doc. 2021-06967 Filed 4-5-21; 8:45 am]
BILLING CODE 4810-AM-P
