Registration of nonbank covered persons subject to certain agency and court orders.
Ongoing focus on holding lawbreaking entities accountable, stopping corp. recidivism.
Covered nonbanks must report certain final agency, court orders, judgments to CFPB.
Also, must register with CFPB when they have been caught violating consumer law.
Provide an attestation from a senior executive that the company is not flouting orders.
Described covered orders, applicable to those with effective date on/after Jan. 1, 2027.
Covered Persons
Applicable to nonbanks that are covered persons per DFA definition, 12 USC 5481.
Rule does not apply to insured depository institutions or insured credit unions.
Also, does not apply to a person who is solely a related person, per DFA definition.
Does not include a State, including federally recognized Indian tribes; a natural person; certain motor vehicle dealers; certain other activity that qualifies under DFA.
If person only qualifies as covered person because of conduct excluded from CFPB rulemaking authority, such as certain activities related to charitable contributions.
Declined to provide an exemption to Credit union service organization (CUSO).
Registration Requirements
Applicable to covered orders that remain in effect on/ in effect on/after Sep. 16, 2024.
Information required for registration included covered nonbank identity information.
Additionally, administrative information, as well as covered order information.
Nonbanks must submit revised filings within 90 days in event of order changes.
One-time, alternative registration option for covered orders on NMLS website.
Registration requirements continue for covered order until deemed expired/terminated.
Those that do not have a termination date deemed to expire 10 years after effective.
Written Statement
CFPB-supervised covered nonbanks must submit review and submit report annually.
Include name and title of attesting executive with respect to each covered order.
Also, annual written statement signed by attesting executive for each covered order.
Designate executive to oversee activities subject to the order; provide attestations.
Maintain sufficient record reasonably supporting statement 5 years after submission.
Changes from Proposal
The CFPB made some changes to the proposal in response to public feedback.
Simplified filing process for registrants with orders in NMLS Consumer Access website.
Additionally, these registration requirements will be phased in on a rolling basis.
Changed terms to nonbank registry and nonbank registry implementation date.
Clarified that application of provisions severable; made other minor, clerical changes.
Effectiveness
Final rule effective Sep. 16, 2024; phased implementation, with larger participant CFPB-supervised covered nonbanks registration deadline on Jan. 14, 2025.
Other CFPB-supervised covered nonbanks by Apr. 14, 2025; others Jul. 14, 2025.
Jul. 2024 CFPB Fed Reg Final Rule
On Jul. 8, 2024, CFPB published final rule in federalregister, effective Sep. 16, 2024.
