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Consumer watchdog agenda halts work on overdraft, student loan servicing rules


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Consumer watchdog agenda halts work on overdraft, student loan servicing rules

Regulations on overdraft products and student loan servicing are officially off the Consumer Financial Protection Bureau's agenda, as Acting Director Mick Mulvaney followed through on his promise to curb these rulemakings.

In the agency's spring 2018 agenda released May 10, the CFPB made no mention of either initiative, both of which were priorities of former Director Richard Cordray.

Compass Point analyst Isaac Boltansky noted that the move to drop the rulemaking on student loans shows that the CFPB is "no longer seen as a near-term risk to the education finance industry." One day earlier, the CFPB folded its student loan office into the office of financial education.

The CFPB also delayed work on third-party debt collection rulemaking and pushed back a proposed rule from 2018 to the first quarter of 2019. On the agency's small-dollar loan rule, known as the payday lending rule, the CFPB says a rewrite is still coming but will not be released until the first quarter of 2019.

On the Home Mortgage Disclosure Act, the CFPB clarified that it will launch rulemaking that will "reconsider" the 2015 final rule requiring the collection of several new HMDA data points. The spring agenda says a notice of proposed rulemaking is also expected in the first quarter of 2019.

The CFPB similarly added a long-term objective to review regulations on credit cards, more specifically on the CFPB's database of credit card agreements. In the long term, the CFPB also hopes to advance regulations concerning automated valuation models for home appraisals and, separately, electronic fund transfer systems.

"The CFPB's rulemaking agenda is completely consistent with signals to date that the Bureau is considerably narrowing its footprint in the market," Boltansky wrote.