CFPB Announces it Intends to Examine Nonbank Companies Posing Risks to Consumers
On April 25, the Consumer Financial Protection Bureau (CFPB) announced its plans to invoke a largely unused legal provision to examine nonbank financial companies that pose risks to consumers. This will include companies such as fintech firms and nonbank mortgage lenders. In a press release, the CFPB stated it believes using this dormant authority will, “help protect consumers and level the playing field between banks and nonbanks.” Additionally, the CFPB issued a procedural rule aimed at increasing the transparency of the risk determination process. Read more.