Print this page

Estimated reading time: 0 minutes, 30 seconds

CFPB Dusts Off 'Dormant Authority' to Regulate Nonbanks

The Consumer Financial Protection Bureau has announced that it will leverage a “largely unused” provision of 2010’s Dodd-Frank financial overhaul law to regulate nonbanks that it deems risky.

CFPB 150x150“Given the rapid growth of consumer offerings by nonbanks, the CFPB is now utilizing a dormant authority to hold nonbanks to the same standards that banks are held to," CFPB director Rohit Chopra said in a statement.

According to the CFPB, the provision applies to “all nonbank entities in the mortgage, private student loan and payday loan industries, regardless of size.” The agency is seeking comment on this process.

Read the full announcement.

Read 955 times
Rate this item
(0 votes)