“Strategies for Fundamental CFPB Changes”
The Consumer Financial Protection Bureau (CFPB or Bureau) announced on January 17, 2018 that it will conduct a review of its enforcement, supervision, rulemaking, market monitoring and education activities – i.e., every component of its regulatory functions. This announcement follows the Bureau’s declaration on January 16, 2018, the effective date of its small dollar lending rule, that it will engage in a rulemaking process to reconsider that rule. These announcements proclaim the Republican leadership’s intent to fundamentally alter the CFPB’s regulation of the industry and point to two paths to effectuate that change: (1) amendment of substantive CFPB rules, and (2) transformation of the CFPB regulatory paradigm. Leveraging these review processes to obtain optimal change will require a long game of strategy, evidence and analysis, built on a foundational understanding of the CFPB’s operational blueprint and activities over the last six years.