CBA Comment Letter re RFI on Bureau Rulemaking Processes

Submitted Electronically:


The Honorable Mick Mulvaney

Acting Director

Bureau of Consumer Financial Protection

1700 G Street NW Washington, DC 20552


RE: Request for Information Regarding Bureau Rulemaking Processes, Docket No. CFPB-2018-0009


Dear Acting Director Mulvaney:


The Consumer Bankers Association (“CBA”)1 appreciates the opportunity to provide the Bureau of Consumer Financial Protection (“BCFP” or “Bureau”) with our comments in response to the notice and request for information (“RFI”) on the rulemaking process.2 CBA supports the Bureau’s effort to assess the overall efficiency and effectiveness of its rulemaking process.  Our comment letter provides specific responses to the RFI, as well as our recommendations on steps the Bureau may take to improve the rulemaking process.


I.          Executive Summary


CBA recommends the Bureau adopt a standardized rulemaking process that is based on the principles of openness, accessibility, and accountability. Openness would promote transparency in the manner in which the Bureau gathers information and analyzes data to support its rulemaking function. Accessibility would require the Bureau to commit to a collaborative rulemaking process that consistently seeks out and incorporates information and perspectives from a diverse array of stakeholders. And accountability would prompt the BCFP to provide industry with more support during the implementation period, and require the Bureau to conduct regular reviews of its rules to assess their efficiency and effectiveness.


As discussed in detail below, our recommendations to the Bureau include:


·    Adopting a standardized rulemaking process based on the principles of openness, accessibility, and accountability.


·    Providing a roadmap to keep stakeholders engaged and updated on the status of a rulemaking.


       ·    Requiring all information collection requests be subject to the Office of Management and Budget’s oversight and to the Paperwork Reduction Act’s requirements.


·    Adopting uniform and consistent methods to analyze costs and benefits based on the rigorous standards generally applicable to federal government agencies.


·    Establishing a minimum comment period of 90 days for each stage of the rulemaking process, or 120 days if there are significant or extensive requests for data. At the notice of proposed rulemaking stage, the standard comment period would be followed by a reply comment period.


·    Modifying the small business review panel process to promote openness and inclusiveness in these proceedings.


·    Adopting new procedures on reviewing and posting comment letters to improve the efficiency of the rulemaking process and mitigate the risks posed by fraudulent comments.


·    Forming an implementation team to support the industry’s compliance with new regulations.


·    Issuing the small entity compliance guide and examination procedures in conjunction with the release of the final rule.


·    Providing covered companies with a 24-month implementation period after the release of a final rule, and a 12-month conformance period to remediate any compliance errors made in good faith.


·    Joining the prudential regulators and National Credit Union Administration in their regular decennial reviews of their regulations.


·    Reassessing the principles, policies or motivations for providing exemptions to certain covered companies in new regulations.


Read full comment letter here.