- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2024-04-17T17:38:00
The Consumer Financial Protection Bureau (CFPB) continued its push to establish supervisory authority over more nonbank financial companies with the adoption of a procedural rule to streamline the process for such designations.
The rule, posted Tuesday, comes less than two months after the agency announced its first case where it established its oversight authority over a firm that did not consent to supervision. The CFPB said other firms have consented and that it “looks forward to a productive supervisory relationship with all the institutions that are now within its supervisory authority.”
The new rule aligns with an agency transition to a new organizational structure for its supervision and enforcement work that will affect supervisory designation proceedings. A CFPB supervision director will initiate such proceedings with a notice of reasonable cause. The rule makes changes to simplify the requirements that notice must meet but does not make any changes to the rights to respond by nonbank covered entities.
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Freedom Mortgage Corp. would have to pay a $3.95 million fine and carry out regular auditing and testing of its loan data under a proposed order by the Consumer Financial Protection Bureau.
The Federal Reserve Board ordered an Arkansas bank that partnered with numerous financial technology companies to correct deficiencies in its anti-money laundering, sanctions, risk management, and consumer compliance programs.
The Consumer Financial Protection Bureau ordered Chime Financial to pay $3.25 million in penalties for allegedly delaying consumer refunds past its promised 14-day timeframe.
The U.S. Supreme Court extended the statute of limitations for businesses attempting to challenge some federal regulations, allowing regulated entities a longer timeline to appeal a decision.
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