The Dodd-Frank Wall Street Reform and Consumer Protection Act: Regulations to be Issued by the Consumer Financial Protection Bureau

The Dodd-Frank Wall Street Reform and Consumer Protection Act: Regulations to be Issued by the Consumer Financial Protection Bureau

The Dodd-Frank Wall Street Reform and
Consumer Protection Act: Regulations to be
Issued by the Consumer Financial Protection
Bureau
Curtis W. Copeland
Specialist in American National Government
August 25, 2010
Congressional Research Service
7-5700
www.crs.gov
R41380
CRS Report for Congress
P
repared for Members and Committees of Congress

Regulations to be Issued by the Consumer Financial Protection Bureau

Summary
Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203, July
21, 2010) consolidates many federal consumer protection responsibilities into a new Bureau of
Consumer Financial Protection (often referred to as the Consumer Financial Protection Bureau, or
CFPB) within the Federal Reserve System. The act transfers supervisory and enforcement
authority over a number of consumer financial products and services to the Bureau on a still-to-
be-determined transfer date during calendar year 2011. Title X and Title XIV of the act contain
numerous provisions that require or permit the CFPB to issue regulations implementing the
statute’s provisions. This report describes those provisions, notes that certain regulatory oversight
tools will not be available for CFPB rules, and discusses the authority of a council of bank
regulators to “set aside” the Bureau’s rules.
Section 1022 alone gives the CFPB broad rulemaking powers, authorizing it to prescribe such
rules “as may be necessary or appropriate” to enable the Bureau to administer federal consumer
financial protection laws. The act contains many other provisions that require or permit the
Bureau to issue rules, most of which give the Bureau substantial discretion regarding whether
rules need to be issued, the contents of those rules, and when they must be issued. The Bureau
also assumes responsibility for certain transferor agencies’ existing rules, proposed rules that have
not been made final, and final rules that have not taken effect. Therefore, other than for about 20
rules that are specifically required in the statute, it is not currently possible to determine how
many rules the Bureau will issue, or the contents of those rules. Although most of the Bureau’s
rulemaking authority and discretion is the same as it was before being transferred from the safety
and soundness (prudential) regulators, it is not clear that those authorities and discretion will be
exercised in the same way.
Like other independent regulatory agencies, some regulatory oversight methods will not be
available for CFPB rules. The Bureau’s significant rules will not be reviewed by the Office of
Management and Budget (OMB) under Executive Order 12866, and those rules will not be
subject to the cost-benefit analysis requirements in the order. The Bureau may be able to void
OMB disapprovals of its collections of information under the Paperwork Reduction Act. Because
the CFPB might not receive appropriated funds, Congress may not be able to control the Bureau’s
rulemaking through appropriations restrictions. Also, the effectiveness of new requirements
placed on the Bureau to examine its rules within five years, and to take certain actions under the
Regulatory Flexibility Act, may depend on how the Bureau interprets key terms.
Congress did, however, empower the newly created Financial Stability Oversight Council
(composed primarily of the heads of the prudential regulatory agencies from which the CFPB was
formed) to “stay” or “set aside” all or part of a Bureau rule that it concludes would put the safety
and soundness of the U.S. banking or financial systems at risk. No other executive branch entity
(including OMB) has previously been given the authority to nullify an agency’s rules, and the
authority to set aside a portion of a rule is greater than the expedited authority Congress gave
itself through the Congressional Review Act (CRA). However, several aspects of the Council
review process are currently unclear (e.g., whether the Council must vote to stay a rule).
Although Congress may not be able to use appropriations restrictions to control CFPB
rulemaking, Congress still has an array of oversight tools available, including confirmation
hearings, oversight hearings, meetings between individual Members and the Bureau, and CRA
resolutions of disapproval. This report will not be updated.
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Regulations to be Issued by the Consumer Financial Protection Bureau

Contents
Introduction ................................................................................................................................ 1
Consumer Financial Protection Bureau.................................................................................. 1
This Report ........................................................................................................................... 3
Provisions Not Included in the Table ............................................................................... 4
CFPB, Like Transferor Agencies, Has Broad Rulemaking Authority............................................ 5
Section 1022 and CFPB Rulemaking..................................................................................... 5
Related Authorities and Duties ........................................................................................ 7
Rule Effectiveness Reports.............................................................................................. 8
Other Rulemaking Requirements and Authorities .................................................................. 8
Most Provisions Provide Bureau Discretion..................................................................... 8
Some Provisions Prescribe Rule Contents or Process..................................................... 10
Publication and Effective Dates..................................................................................... 12
Rulemaking Authority and Discretion Generally the Same .................................................. 13
Some Federal Rulemaking Requirements Not Applicable to CFPB Rules .................................. 13
Many Rulemaking Requirements, and Exceptions, Apply to CFPB Rules ............................ 14
Some Rulemaking Requirements and Controls Are Not Applicable to the CFPB.................. 15
Executive Order 12866 ................................................................................................. 15
Paperwork Reduction Act.............................................................................................. 16
Unfunded Mandates Reform Act ................................................................................... 16
Appropriations Restrictions........................................................................................... 16
Effectiveness of New Rulemaking Requirements Depends on How the Bureau
Interprets Key Terms........................................................................................................ 17
Regulatory Flexibility Act Amendments ........................................................................ 17
“Lookback” Requirement .............................................................................................. 18
Oversight Council is Permitted to ”Stay” or “Set Aside” CFPB Regulations .............................. 18
Unique Authority ................................................................................................................ 19
Concluding Observations .......................................................................................................... 20
Congressional Oversight Options ........................................................................................ 21
Congressional Review Act ............................................................................................ 22

Appendixes
Appendix. Regulations to Be Issued by the Consumer Financial Protection Bureau ................... 24

Contacts
Author Contact Information ...................................................................................................... 37

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Regulations to be Issued by the Consumer Financial Protection Bureau

Introduction
The Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203, July 21, 2010,
hereafter, the “Dodd-Frank Act”) was enacted in the wake of what many believe was the worst
U.S. financial crisis since the Great Depression. The legislation addresses a variety of issues that
arose as a result of that crisis, one of which was the perception that the federal system of
consumer protection was fragmented and, in some cases, inconsistent with other regulatory
functions.1 For example, safety and soundness (prudential) regulators and consumer protection
regulators may look on the same activity differently. Therefore, some argued that separating
prudential and consumer protection regulation into separate agencies is the best way to protect
both consumers and financial institutions.
Until the Dodd-Frank Act fully goes into effect, the Board of Governors of the Federal Reserve
System will continue to write rules to implement most of the consumer financial protection laws.
Enforcement of these laws is shared by a variety of prudential regulators, including the Office of
the Comptroller of the Currency for national banks; the Federal Reserve Board for domestic
operations of foreign banks and for state-chartered banks that are members of the Federal Reserve
System; the Federal Deposit Insurance Corporation for state-chartered banks and other state-
chartered banking institutions that are not members of the Federal Reserve System; the National
Credit Union Administration for federally insured credit unions; and the Office of Thrift
Supervision for federal savings and loan associations and thrifts. The Federal Trade Commission
is the primary federal regulator for non-depository financial institutions (e.g., payday lenders and
mortgage brokers) and many other non-financial commercial enterprises.2
Consumer Financial Protection Bureau
Title X of the Dodd-Frank Act, entitled the “Consumer Financial Protection Act of 2010,”3
consolidates many federal consumer protection responsibilities into a new Bureau of Consumer
Financial Protection (often referred to as the Consumer Financial Protection Bureau, CFPB, or
Bureau) within the Federal Reserve System. 4 The act gives the CFPB rulemaking, enforcement,
and supervisory authority over a variety of consumer financial products and services (and many
of the entities that offer these products and services), and transfers to the Bureau rulemaking and
enforcement authority over many previously enacted consumer protection laws. The Bureau’s
authority varies according to the type of company,5 and the act explicitly exempts certain entities
and activities from the Bureau’s authority.6

1 For more information on the Dodd-Frank Act, see CRS Report R41350, The Dodd-Frank Wall Street Reform and
Consumer Protection Act: Issues and Summary, coordinated by Baird Webel.
2 For more information, see CRS Report R41338, The Dodd-Frank Wall Street Reform and Consumer Protection Act:
Title X, The Consumer Financial Protection Bureau, by David H. Carpenter.
3 Section 1001.
4 For more detailed information on Title X of the act, see CRS Report R41338, The Dodd-Frank Wall Street Reform
and Consumer Protection Act: Title X, The Consumer Financial Protection Bureau, by David H. Carpenter.
5 The relevant categories include “larger depositories” (those with more than $10 billion in assets), “smaller
depositories (those with $10 billion or less in assets), and certain covered “nondepositories.”
6 For example, the CFPB will not have primary supervisory and enforcement powers over smaller depositories, but will
be able to participate in examinations conducted by the institutions’ prudential regulators, and can refer potential
(continued...)
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Congress created the CFPB as an independent regulatory agency within the Federal Reserve
System (which is, itself, an independent regulatory agency).7 Such agencies are intended to be
more independent of the President than cabinet departments and other executive branch
agencies.8 The Bureau is to be headed by a director, who is appointed by the President, with the
advice and consent of the Senate, to a five-year term of office. The director can only be removed
from office for “inefficiency, neglect of duty, or malfeasance in office.”9 Until a director is
confirmed, the Secretary of the Treasury assumes all of the powers of the director. The CFPB is
funded, up to certain caps, using proceeds from the combined earnings of the Federal Reserve
System, which the Dodd-Frank Act says are not reviewable by either the House or the Senate
appropriations committees.10 Using the Federal Reserve System’s operating expenses as a
baseline, the CFBP could receive up to about $550 million for FY2011. However, if the director
of the CFPB determines that these funds are insufficient, the act authorizes appropriations of up
to $200 million per year for FY2010 through FY2014.
Some portions of the Consumer Financial Protection Act went into effect on the date of
enactment, while many other parts of the act go into effect on the “designated transfer date,”
which the Secretary of the Treasury is required to establish not later than 60 days after the date of
enactment (i.e., by September 19, 2010).11 The act generally requires that the transfer date “be not
earlier than 180 days, nor later than 12 months, after the date of enactment of this Act” (i.e.,
between January 17, 2011, and July 21, 2011).12 Between the date of enactment and that transfer
date, the Board of Governors of the Federal Reserve System (“Board of Governors”) is required
to transfer to the Bureau “the amount estimated by the Secretary needed to carry out the
authorities granted to the Bureau under Federal consumer financial law.”13

(...continued)
enforcement actions to their prudential regulators.
7 Section 1100D. This section amended a statutory listing of independent regulatory agencies (44 U.S.C. 3502(5)),
which includes such financial regulatory agencies as the Board of Governors of the Federal Reserve System, the
Commodity Futures Trading Commission, and the Securities and Exchange Commission.
8 See, for example, Paul R. Verkuil, “The Purposes and Limits of Independent Agencies,” Duke Law Journal, vol. 37
(April-June 1988), pp. 257-279; and Marshall J. Breger and Gary J. Edles, “Established by Practice: The Theory and
Operation of Independent Federal Agencies,” Administrative Law Review, vol. 52 (2000), pp. 1111-1294.
9 Section 1011(c).
10 Section 1017.
11 See Section 1062 for more information on the designated transfer date. The Secretary is required to determine the
transfer date “in consultation with the Chairman of the Board of Governors, the Chairperson of the Corporation, the
Chairman of the Federal Trade Commission, the Chairman of the National Credit Union Administration Board, the
Comptroller of the Currency, the Director of the Office of Thrift Supervision, the Secretary of the Department of
Housing and Urban Development, and the Director of the Office of Management and Budget.”
12 Section 1062(c). The Secretary can designate a transfer date later than 12 months after the date of enactment if
Congress is provided a written notice and explanation, but in no case can the date be later than 18 months after the date
of enactment.
13 Section 1017(a)(3). As noted later in this report, Section 1002(14) of the Dodd-Frank Act defines “Federal consumer
financial law” as “the provisions of this title, the enumerated consumer laws, the laws for which authorities are
transferred under subtitles F and H, and any rule or order prescribed by the Bureau under this title, an enumerated
consumer law, or pursuant to the authorities transferred under subtitles F and H. The term does not include the Federal
Trade Commission Act.” The “enumerated consumer laws” are defined in subsection (12) as including the Alternative
Mortgage Transaction Parity Act of 1982 (12 U.S.C. 3801 et seq.); the Consumer Leasing Act of 1976 (15 U.S.C. 1667
et seq.); the Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.), except with respect to section 920 of that act; the
Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.); the Fair Credit Billing Act (15 U.S.C. 1666 et seq.); the Fair
Credit Reporting Act (15 U.S.C. 1681 et seq.), except with respect to sections 615(e) and 628 of that act (15 U.S.C.
1681m(e), 1681w); the Home Owners Protection Act of 1998 (12 U.S.C. 4901 et seq.); and the Fair Debt Collection
(continued...)
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Section 1063(i) of the Dodd-Frank Act requires the Bureau, no later than the designated transfer
date, to consult with the head of each agency transferring consumer protection functions and
“identify the rules and orders that will be enforced by the Bureau.” The agreed-upon list of rules
and orders must be published in the Federal Register. Section 1063(j) states that “Any proposed
rule of a transferor agency which that agency, in performing consumer financial protection
functions transferred by this title, has proposed before the designated transfer date, but has not
been published as a final rule before that date, shall be deemed to be a proposed rule of the
Bureau.” It also says that “any interim or final rule of a transferor agency which that agency, in
performing consumer financial protection functions transferred by this title, has published before
the designated transfer date, but which has not become effective before that date, shall become
effective as a rule of the Bureau according to its terms.”14
This Report
In addition to the above-mentioned general provisions making the CFPB responsible for
transferor agencies’ existing and pending rules, Title X of the Dodd-Frank Act contains numerous
specific provisions that require or permit the Bureau to issue new regulations implementing the
act’s provisions. Title XIV of the act, entitled the “Mortgage Reform and Anti-Predatory Lending
Act,”15 also contains several provisions that require or permit the Bureau to issue rules.
Commenters on the Dodd-Frank Act have expressed both concerns and hopes regarding the
effects that these and other financial reform rules will have on the economy and on consumer
protection,16 with the operation of the CFPB a particular concern to some observers. 17 By one
count, the legislation mentions a total of 243 “rulemakings” that are expected to occur pursuant to
the act, with the Bureau accounting for 24 of those actions.18 Others have placed the number of
rules expected to be issued pursuant to the act even higher.19

(...continued)
Practices Act (15 U.S.C. 1692 et seq.).
14 Interim final rulemaking is a particular application of the “good cause” exception to the notice-and-comment
requirements in the Administrative Procedure Act (5 U.S.C. 553) in which an agency publishes a final rule without a
previous proposed rule, but with a post-promulgation opportunity for comment.
15 Section 1400(a).
16 See, for example, David Cho, “Geithner’s Realm Grows as Overhaul Nears Finish,” Washington Post, July 17, 2010,
p. A1; Lorraine Mirabella, “Lawyers Await Regulations to Spring from Financial Reform,” McClatchy-Tribune
Business News, July 27, 2010; and Eric Lichtblau, “Ex-Regulators Lobby to Shape Overhaul,” New York Times, July
28, 2010, p. B1.
17 See, for example, Jim Puzzanghera, “Wall Street Nervous About Watchdog’s Bite; A Leading Candidate to Head a
New Consumer Protection Agency Has Powerful Enemies,” Los Angeles Times, p. A1; and Eileen Mozinski Schmidt,
“Finance Leaders Wary of New Law,” Telegraph-Herald, July 29, 2010, p. A-1, which said that “top of mind for many
is how the new federal consumer-protection agency will develop and who will run it.”
18 Davis Polk & Wardwell, LLP, “Summary of the Dodd-Frank Wall Street Reform and Consumer Protection Act,
Enacted into Law on July 21, 2010,” available at http://www.davispolk.com/files/Publication/7084f9fe-6580-413b-
b870-b7c025ed2ecf/Presentation/PublicationAttachment/1d4495c7-0be0-4e9a-ba77-f786fb90464a/
070910_Financial_Reform_Summary.pdf.
19 For example, the Chamber of Commerce’s Center for Capital Markets Competitiveness said that the Dodd-Frank Act
“will lead to 520 rulemakings.” See Thomas Quaadman, “Dodd-Frank: Governance Issues Galore and Not Limited to
Financial Institutions, the Metropolitan Corporate Counsel, August 2010, p. 18, available at
http://www.metrocorpcounsel.com/current.php?artType=view&artMonth=August&artYear=2010&EntryNo=11258.
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This report describes the rulemaking provisions in Titles X and XIV of the Dodd-Frank Act that
pertain to the CFPB.20 To identify those provisions, CRS searched through the text of Titles X and
XIV in the enrolled version of H.R. 4173 as passed by the House of Representatives and the
Senate (because the text of the public law was not yet available) using certain words and terms
(“regulation,” “final rule,” “proposed rule,” “rulemaking,” “prescribe rules,” “prescribe
regulations,” “by rule,” and “such rules”). The results of that effort are provided in a table in the
Appendix to this report. Although this process identified more than 50 CFPB-related rulemaking
provisions, it is unclear whether the searches identified all such provisions in the legislation. (For
example, other rulemaking provisions may have used other terms.) The report also notes that
while some regulatory oversight procedures and requirements will not apply to CFPB rules, the
Dodd-Frank Act gives a council composed primarily of prudential regulators substantial authority
to dispose of the Bureau’s rules.
The table in the Appendix is organized into two groups: (1) provisions that require the CFPB to
issue regulations (e.g., stating that the Bureau “shall prescribe regulations…”); and (2) provisions
that permit, but do not require, the issuance of regulations (e.g., stating that the CFPB “may
prescribe rules…”). For each such provision, the table provides the section number in the Dodd-
Frank Act, the relevant text of the provision, whether the act requires the participation of other
agencies in the development or issuance of the rule, and any deadlines delineated in the act
regarding the issuance or implementation of the rules.
Provisions Not Included in the Table
The table in the Appendix does not include some general regulatory provisions in Titles X and
XIV, including certain wholesale transfers of rulemaking authority from one agency to the CFPB.
For example, Section 1061(b)(5)(A) states that the “authority of the Federal Trade Commission
under an enumerated consumer law to prescribe rules, issue guidelines, or conduct a study or
issue a report mandated under such law shall be transferred to the Bureau on the designated
transfer date.” While it is possible that the Bureau may issue regulations pursuant to these types
of transferred authorities, cataloguing all of the rulemaking authorities covered by this provision
is beyond the scope of this report. Also, as noted previously, the CFPB and the prudential
regulators have until the designated transfer date to decide which existing rules the Bureau will
enforce.
The table also does not include provisions in the Dodd-Frank Act that may result in regulations,
but that do not specifically require or permit rulemaking. For example, Section 1463(a) of the act
amended Section 6 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605), and
states (in part) that
A servicer of a federally related mortgage shall accept any reasonable form of written
confirmation from a borrower of existing insurance coverage, which shall include the
existing insurance policy number along with the identity of, and contact information for, the
insurance company or agent, or as otherwise required by the Bureau of Consumer Financial
Protection.

20 Titles X and XIV also require other agencies to issue regulations.
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Pursuant to this provision, the Bureau may issue regulations establishing written confirmation
requirements. However, because the legislation did not specifically require or permit the issuance
of rules, this provision is not included in the table.
Finally, the table does not include any rulemaking authorities involving the internal operation of
the Bureau. For example, Section 1012(a)(1) of the Dodd-Frank Act authorizes the Bureau to
establish general policies with respect to all executive and administrative functions, including
“the establishment of rules for conducting the general business of the Bureau.” This provision is
not included in the table.
CFPB, Like Transferor Agencies, Has Broad
Rulemaking Authority
In addition to the previously mentioned provisions in Section 1063 of the Dodd-Frank Act
making the CFPB generally responsible for transferor agencies’ existing and pending rules, Titles
X and XIV of the act contain more than 50 provisions that transfer certain rulemaking authorities
to the CFPB, or that give the Bureau new rulemaking authority. These provisions sometimes
require the Bureau to issue certain rules, but they more often give the agencies the discretion to
decide whether to issue rules within a particular area, and if so, what those rules will contain.
Although most of the Bureau’s legal rulemaking authority and discretion is the same as it was
before being transferred from the prudential regulators, it is not clear that those authorities and
discretion will be exercised in the same way.
Section 1022 and CFPB Rulemaking
Section 1022 of the act alone (“Rulemaking Authority”) gives the CFPB broad rulemaking
powers and responsibilities. For example, Section 1022(a) states that the Bureau is “authorized to
exercise its authorities under Federal consumer financial law to administer, enforce, and
otherwise implement the provisions of Federal consumer financial law.” Section 1022(b)(1)
permits the director of the Bureau to “prescribe rules and issue orders and guidance, as may be
necessary or appropriate to enable the Bureau to administer and carry out the purposes and
objectives of the Federal consumer financial laws, and to prevent evasions thereof.”
The term “Federal consumer financial laws” is defined as including the new authorities provided
in Title X, the authorities that were transferred to the Bureau under subtitles F and H, and the
authorities in certain “enumerated consumer laws,”21 which generally include22
• the Alternative Mortgage Transaction Parity Act of 1982 (12 U.S.C. 3801 et
seq.);
• the Consumer Leasing Act of 1976 (15 U.S.C. 1667 et seq.);
• the Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.), except with respect to
section 920 of that act;

21 Section 1002(14).
22 The definition of “enumerated consumer laws” is in Section 1002(12).
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• the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.);
• the Fair Credit Billing Act (15 U.S.C. 1666 et seq.);
• the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), except with respect to
sections 615(e) and 628 of that act (15 U.S.C. 1681m(e), 1681w);
• the Home Owners Protection Act of 1998 (12 U.S.C. 4901 et seq.);
• the Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.);
• subsections (b) through (f) of section 43 of the Federal Deposit Insurance Act (12
U.S.C. 1831t(c)-(f));
• Sections 502 through 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802-
6809) except for section 505 as it applies to section 501(b);
• the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.);
• the Home Ownership and Equity Protection Act of 1994 (15 U.S.C. 1601 note);
• the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.);
• the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.);
• the Truth in Lending Act (15 U.S.C. 1601 et seq.);
• the Truth in Savings Act (12 U.S.C. 4301 et seq.);
• Section 626 of the Omnibus Appropriations Act, 2009 (P.L. 111-8); and
• the Interstate Land Sales Full Disclosure Act (15 U.S.C. 1701).
As discussed in detail in the next section of this report, the CFPB’s rulemaking activities are
subject to all of the applicable government-wide requirements (e.g., the Administrative Procedure
Act), as well as the specific requirement in the enumerated consumer laws being transferred to the
Bureau. In addition, Section 1022(b)(2) of the Dodd-Frank Act says that, in prescribing a rule
under the federal consumer financial laws, the Bureau must “consider…the potential benefits and
costs to consumers and covered persons,” “the impact of proposed rules on covered persons,” and
“the impact on consumers in rural areas.”23 It also requires the Bureau to “consult with the
appropriate prudential regulators or other Federal agencies prior to proposing a rule and during
the comment process regarding (the rule’s) consistency with prudential, market, or systemic
objectives administered by such agencies.” If a prudential regulator provides the CFPB with a
written objection to all or part of a proposed rule, the Bureau is required to “include in the
adopting release a description of the objection and the basis for the Bureau decision, if any,
regarding such objection.”24 Notably, however, while these federal regulators and agencies can
file objections to the Bureau’s draft rules, Section 1022 does not permit them to prevent the rules
from going forward.
Also, Section 1022(b)(4) states that, with one exception,25

23 Section 1022(b)(2)(A).
24 Section 1022(b)(2)(B) and (C).
25 The exception is in Section 1061(b)(5), involving the authority of the Federal Trade Commission under the Federal
Trade Commission Act.
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to the extent that a provision of Federal consumer financial law authorizes the Bureau and
another Federal agency to issue regulations under that provision of law for purposes of
assuring compliance with Federal consumer financial law and any regulations thereunder, the
Bureau shall have the exclusive authority to prescribe rules subject to those provisions of
law.
It also says that “the deference that a court affords to the Bureau with respect to a determination
by the Bureau regarding the meaning or interpretation of any provision of a Federal consumer
financial law shall be applied as if the Bureau were the only agency authorized to apply, enforce,
interpret, or administer the provisions of such Federal consumer financial law.”26
Related Authorities and Duties
To support its rulemaking functions, the CFPB is required to “monitor for risks to consumers in
the offering or provision of consumer financial products or services.”27 As part of this monitoring
effort, the Bureau is authorized to
require covered persons and service providers participating in consumer financial services
markets to file with the Bureau, under oath or otherwise, in such form and within such
reasonable period of time as the Bureau may prescribe by rule or order, annual or special
reports, or answers in writing to specific questions.28
To determine whether a nondepository institution (e.g., a payday lender or a mortgage broker) is a
“covered person,” the CFPB is authorized to require the nondepository “to file with the Bureau,
under oath or otherwise, in such form and within such reasonable period of time as the Bureau
may prescribe by rule or order, annual or special reports, or answers in writing to specific
questions.”29 In addition, Section 1022(c)(7) of the act permits the CFPB to prescribe rules
regarding registration requirements applicable to “covered persons” (other than an insured
depository institution, insured credit union, or related person). The section also permits the
Bureau to issue rules regarding the disclosure of that registration information to the public.30
The Bureau is required to publish at least one report per year regarding the “significant findings
of its monitoring,” with the first report required “beginning with the first calendar year that begins
at least 1 year after the designated transfer date.”31 However, the Bureau is also allowed to make
public, through reports or “other appropriate formats,” any other information that it obtains from

26 Section 1022(b)(4).
27 Section 1022(c).
28 Section 1022(c)(4)(B)(ii).
29 Section 1022(c)(5). If these reports or answers meet the definition of a “collection of information” in the Paperwork
Reduction Act (PRA), then they will have to be reviewed by the Office of Management and Budget before the
information can be collected. The PRA (44 U.S.C. 3502(3)) defines “collection of information” as “the obtaining,
causing to be obtained, soliciting, or requiring the disclosure to third parties or the public, of facts or opinions by or for
an agency, regardless of form or format, calling for…answers to identical questions posed to, or identical reporting or
recordkeeping requirements imposed on, ten or more persons, other than agencies, instrumentalities, or employees of
the United States.” For more information, see CRS Report R40636, Paperwork Reduction Act (PRA): OMB and
Agency Responsibilities and Burden Estimates, by Curtis W. Copeland and Vanessa K. Burrows.
30 These registration and disclosures may also be covered by the PRA’s information collection and dissemination
requirements. See 44 U.S.C. 3506(c) (for agency information collection requirements) and 44 U.S.C. 3506(d) (for
agency information dissemination requirements).
31 Section 1022(c)(3)(A).
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its monitoring effort that it determines is “in the public interest,” provided that any confidential
information that it collects is protected.32 To the extent that the Bureau’s rulemaking is an
outgrowth of such monitoring, the interested public may be able to review those reports and
determine what CFPB rules could be forthcoming.33
Rule Effectiveness Reports
Section 1022(d) of the act requires the CFPB to publish a report assessing the effectiveness of
each “significant rule or order” within five years of it taking effect.34 The act requires these
assessments to address, among other things, “the effectiveness of the rule or order in meeting the
purposes and objectives of this title and the specific goals stated by the Bureau.” Before
publishing the required report, the CFPB is required to obtain comments from the public about
any recommendations for modifying, expanding, or eliminating the significant rule or order.
Other Rulemaking Requirements and Authorities
In addition to the broad rulemaking powers provided by Section 1022, Titles X and XIV of the
Dodd-Frank Act also contain dozens of other provisions that require or permit the CFPB to issue
regulations. Most of those provisions give the Bureau substantial discretion regarding whether,
and if so, how rules should be crafted. Some sections are more specific, and describe what the
rules should contain and/or how they should be promulgated. Most of the provisions in Title X
authorize only the Bureau to issue rules, whereas almost all of the provisions in Title XIV require
the rules to be issued jointly with a group of other agencies. Also, while a few of the rulemaking
provisions in Title X indicate when the rules must be issued or implemented, in most cases the
title is silent regarding the timing of the rules. Title XIV, on the other hand, contains a general
provision stipulating when rules issued under the title must be published and take effect.
Most Provisions Provide Bureau Discretion
The non-mandatory rulemaking provisions in the Dodd-Frank Act arguably provide the CFPB
with the greatest amount of discretion, allowing the Bureau to decide whether any regulations
will be developed at all, and if issued, what the rules will contain. For example:
• Section 1071(a) of the act (amending the Equal Credit Opportunity Act (15
U.S.C. 1691 et seq.)) states that the Bureau “shall prescribe such rules and issue
such guidance as may be necessary to carry out, enforce, and compile data
pursuant to this section (on small business data collection).” Therefore, the
Bureau can decide whether regulations or guidance in this area are “necessary,”
and if so, what any such rules will require.

32 Section 1022(c)(6)(A) requires the Bureau to “prescribe rules regarding the confidential treatment of information
obtained from persons in connection with the exercise of its authorities under Federal consumer financial law.”
33 The public may also be informed of upcoming rules through advance notices of proposed rulemaking, and through
entries in the Unified Agenda of Federal Regulatory and Deregulatory Actions.
34 The act does not specify what types of rules are to be considered “significant,” presumably leaving these
determinations to the Bureau.
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• Section 1097(1) (amending Section 626 of the Omnibus Appropriations Act,
2009 (15 U.S.C. 1638 note)) says the Bureau “shall have authority to prescribe
rules with respect to mortgage loans in accordance with section 553 of title 5,
United States Code. Such rulemaking shall relate to unfair or deceptive acts or
practices regarding mortgage loans, which may include unfair or deceptive acts
or practices involving loan modification and foreclosure rescue services.” 35 The
Bureau can decide whether or not to use this rulemaking authority, and (within
the parameters provided in this section) can determine the content of any rules
that it decides to issue.
Although the mandatory provisions in the act require that certain rules be issued, they often give
the Bureau substantial discretion regarding how the required rules will be crafted. For example:
• Section 1022(c)(6)(A) states that the Bureau “shall prescribe rules regarding the
confidential treatment of information obtained from persons in connection with
the exercise of its authorities under Federal consumer financial law.” This
provision does not prescribe either the content of the required rules or how they
should be developed.
• Section 1024(b)(7)(A) requires the Bureau to “prescribe rules to facilitate
supervision of persons described in subsection (a)(1) and assessment and
detection of risks to consumers.” Section 1024 relates to “Supervision of
Nondepository Covered Persons,” and subsection (a)(1) states that the section
applies to any covered person who, among other things, “offers or provides
origination, brokerage, or servicing of loans secured by real estate for use by
consumers primarily for personal, family, or household purposes, or loan
modification or foreclosure relief services in connection with such loans;” or
“offers or provides to a consumer a payday loan.” The section does not indicate
how the required rules should be crafted or what they should contain.
• Section 1042(c) requires the Bureau to “prescribe regulations to implement the
requirements of this section” (on “Preservation of Enforcement Powers of the
States”). Although Section 1042 prescribes certain legal authorities and
consultation requirements, the section does not otherwise indicate what the
required regulations must contain.
• Section 1053(e) states that the Bureau “shall prescribe rules establishing such
procedures as may be necessary to carry out this section” (on “Hearings and
Adjudication Proceedings”). Section 1053 delineates special rules for cease-and-
desist proceedings and enforcement of orders, but does not otherwise prescribe
the contents of those rules.
• Section 1100(6)(B) states that the Bureau “is authorized to promulgate
regulations setting minimum net worth or surety bond requirements for
residential mortgage loan originators and minimum requirements for recovery
funds paid into by loan originators.” In issuing those regulations, the section

35 Section 553 of Title 5 generally requires federal agencies to publish a notice of proposed rulemaking, take comments
on the proposed rule, develop a final rule taking those comments into consideration, and publish a final rule that cannot
take effect until 30 days after the rule is published in the Federal Register. Even in the absence of this provision, these
“notice and comment” requirements would generally apply to most of the rules that the Bureau is required or
authorized to issue.
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requires the Bureau to “take into account the need to provide originators adequate
incentives to originate affordable and sustainable mortgage loans, as well as the
need to ensure a competitive origination market that maximizes consumer access
to affordable and sustainable mortgage loans.” Otherwise, the section does not
indicate what those rules should contain.
As was the case with the discretionary provisions, some of the mandatory rulemaking provisions
in Title X and Title XIV of the Dodd-Frank Act amend other statutes, and give the CFPB broad
transferred authority within those amended statutes. For example, Section 1084 of the act amends
the Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.) and states that, with certain exceptions,
the Bureau “shall prescribe rules to carry out the purposes of this title.” (This section transferred
certain rulemaking authorities from the Board of Governors of the Federal Reserve System to the
CFPB.)
Certain sections of the act appear to allow the Bureau to take other, non-rulemaking actions to
satisfy the underlying requirement. For example, Section 1002(25) states that the definition of a
“related person” includes “any shareholder, consultant, joint venture partner, or other person, as
determined by the Bureau (by rule or on a case-by-case basis) who materially participates in the
conduct of the affairs of such covered person.” Therefore, the Bureau could issue a rule defining
these terms, or could adjudicate each case individually. Also, Section 1079(c) of the act requires
the Bureau to “propose regulations or otherwise establish a program to protect consumers who
use exchange facilitators.” Therefore, the Bureau could issue a rule to protect consumers, or could
do so by establishing a program.
Some Provisions Prescribe Rule Contents or Process
In contrast to the previously mentioned broad grants of rulemaking authority, some CFPB-related
rulemaking provisions in Titles X and XIV, or the statutes amended by those titles, prescribe the
contents of the rules that the statute requires or permits the Bureau to issue. For example, Section
1473(f)(2) of the act requires the Bureau and other agencies to “jointly, by rule, establish
minimum requirements to be applied by a State in the registration of appraisal management
companies.” That provision also states the following:
Such requirements shall include a requirement that such companies—(1) register with and be
subject to supervision by a State appraiser certifying and licensing agency in each State in
which such company operates; (2) verify that only licensed or certified appraisers are used
for federally related transactions; (3) require that appraisals coordinated by an appraisal
management company comply with the Uniform Standards of Professional Appraisal
Practice; and (4) require that appraisals are conducted independently and free from
inappropriate influence and coercion pursuant to the appraisal independence standards
established under section 129E of the Truth in Lending Act.
Section 1094(3)(B) of the act (amending the Home Mortgage Disclosure Act of 1975 (12 U.S.C.
2801 et seq.)) also specifies the content of the required rule. That section requires the Bureau to
develop regulations that (A) prescribe the format for such disclosures, the method for
submission of the data to the appropriate agency, and the procedures for disclosing the
information to the public; (B) require the collection of data required to be disclosed under
subsection (b) with respect to loans sold by each institution reporting under this title; (C)
require disclosure of the class of the purchaser of such loans; (D) permit any reporting
institution to submit in writing to the Bureau or to the appropriate agency such additional
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data or explanations as it deems relevant to the decision to originate or purchase mortgage
loans; and (E) modify or require modification of itemized information, for the purpose of
protecting the privacy interests of the mortgage applicants or mortgagors, that is or will be
available to the public.
Some of the rulemaking authorities transferred to the Bureau also contain specific requirements.
For example, Section 1088(a)(9) of the act amended the Fair Credit Reporting Act (15 U.S.C.
1681 et seq.) and states that the Bureau “shall prescribe rules to carry out this subsection.”
(Previously, this rulemaking authority had been jointly provided to the Federal Trade Commission
and the Board of Governors.) As had been the case with regard to the agencies who were
previously required to issue these rules, the Bureau’s rules are required to address
(i) the form, content, time, and manner of delivery of any notice under this subsection; (ii)
clarification of the meaning of terms used in this subsection, including what credit terms are
material, and when credit terms are materially less favorable; (iii) exceptions to the notice
requirement under this subsection for classes of persons or transactions regarding which the
agencies determine that notice would not significantly benefit consumers; (iv) a model notice
that may be used to comply with this subsection; and (v) the timing of the notice required
under paragraph (1), including the circumstances under which the notice must be provided
after the terms offered to the consumer were set based on information from a consumer
report.36
Procedural Requirements
Some provisions in Titles X and XIV specify the process by which CFPB rules should be
developed or issued. For example, Section 1041(c)(1) of the act requires the Bureau to “issue a
notice of proposed rulemaking whenever a majority of states has enacted a resolution in support
of the establishment or modification of a consumer protection regulation by the Bureau.” The
next paragraph states that
Before prescribing a final regulation based upon a notice issued pursuant to paragraph (1),
the Bureau shall take into account whether (A) the proposed regulation would afford greater
protection to consumers than any existing regulation; (B) the intended benefits of the
proposed regulation for consumers would outweigh any increased costs or inconveniences
for consumers, and would not discriminate unfairly against any category or class of
consumers; and (C) a Federal banking agency has advised that the proposed regulation is
likely to present an unacceptable safety and soundness risk to insured depository institutions.
The section goes on to require the Bureau to include a discussion of these considerations in the
Federal Register notice of any final regulation. If the Bureau decides not to issue a final
regulation, the statute requires it to “publish an explanation of such determination in the Federal
Register, and provide a copy of such explanation to each State that enacted a resolution in support
of the proposed regulation, the Committee on Banking, Housing, and Urban Affairs of the Senate,
and the Committee on Financial Services of the House of Representatives.”37
Other provisions also establish certain procedural requirements for rulemaking. For example:

36 15 U.S.C. 1681m(h)(6)(B).
37 Section 1041(c)(3).
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• Section 1024(a)(2) states that the Bureau “shall consult with the Federal Trade
Commission prior to issuing a rule…to define covered persons subject to this
section” (on “Supervision of Nondepository Covered Persons”).
• Section 1094 requires the Bureau to issue certain rules “in consultation with other
appropriate agencies.”
As noted previously in this report, although these and other provisions require the CFPB to
consult with other agencies before issuing their rules, the act does not permit those agencies to
prevent the issuance of the rules.
Most of the provisions in Title X require or permit the CFPB alone to issue the required or
permitted rules. Exceptions include (1) Section 1025(e)(4)(E), which requires the Bureau to
prescribe certain rules with the “prudential regulators;” and (2) Section 1088(b)(3), which
requires the Bureau, the Commodity Futures Trading Commission, and the Securities and
Exchange Commission to each issue regulations carrying out Section 624 of the Fair Credit
Reporting Act. In contrast, the provisions in Title XIV of the act almost always require that the
Bureau issue the required rules jointly with the Board of Governors, the Comptroller of the
Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration
Board, and the Federal Housing Finance Agency.38
Publication and Effective Dates
Most of the individual provisions in Titles X and XIV of the Dodd-Frank Act that require or
permit CFPB to issue rules do not specify when those rules must be published or take effect. To
the extent that the timing of the rules is mentioned in those provisions, the issuance is always
keyed to the designated transfer date. For example:
• Section 1024(a)(2) states that the “initial rule” must be issued within one year of
the transfer date.
• Section 1079(c) requires that a proposed rule be issued (or a program be
established) within two years after the submission of a report, which is required
within one year of the transfer date.
• Section 1083(a) of the act (amending the Alternative Mortgage Transaction Parity
Act of 1982 (12 U.S.C. 3801 et seq.)) requires that regulations be promulgated
“after the designated transfer date.”
In contrast to the timing discretion given to the Bureau in Title X, Section 1400(c) of the
legislation states that all of the regulations required under Title XIV must “(A) be prescribed in
final form before the end of the 18-month period beginning on the designated transfer date; and
(B) take effect not later than 12 months after the date of issuance of the regulations in final form.”
It goes on to say that sections or provisions in that title “shall take effect on the date on which the
final regulations implementing such section, or provision, take effect.” Sections for which
regulations have not been issued are required to take effect 18 months after the designated
transfer date.

38 The only Title XIV provision that does not require that regulations be jointly issued is in Section 1463(a) (amending
Section 6 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605)).
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Rulemaking Authority and Discretion Generally the Same
Although the Dodd-Frank Act gives the CFPB some new responsibilities, most of its rulemaking
authority and discretion was transferred to the Bureau through the enumerated consumer laws.
With regard to those laws, the Bureau has the same amount of rulemaking authority and
discretion as the prudential regulators that previously were responsible for them. What is
different, however, is that the consumer protection powers provided by those laws are now vested
in a single agency, and that agency now has as its primary mission to “regulate the offering and
provision of consumer financial products or services.”39 Whether those contextual differences will
result in different regulations, or different application of existing rules, is currently unclear.
Some Federal Rulemaking Requirements Not
Applicable to CFPB Rules
During the past 65 years, Congress and various presidents have developed an elaborate set of
procedures and requirements to guide and oversee the federal rulemaking process. Statutory
requirements include the Administrative Procedure Act, the Regulatory Flexibility Act, the
Paperwork Reduction Act, the Unfunded Mandates Reform Act, and the Congressional Review
Act—each of which requires that certain procedural and/or analytical requirements be addressed
before agencies’ rules can be published and take effect.40 The scope and effectiveness of these and
other congressional efforts to control the rulemaking process vary. For example, although
Congress has used the Congressional Review Act (5 U.S.C. 801-808) to disapprove only one final
rule in more than 14 years,41 every year Congress adds a number of provisions to agencies’
appropriations bills stating that “none of the funds” provided through the legislation can be used
to initiate rulemaking in certain areas, to make certain proposed rules final, or to implement
certain final rules.42
Presidential review of agency rulemaking is currently centered in Executive Order 12866, which
requires covered agencies to submit their “significant” regulatory actions to the Office of
Information and Regulatory Affairs (OIRA) within the Office of Management (OMB) before they
are published in the Federal Register.43 OIRA reviews the rules to determine their consistency

39 Section 1011.
40 For more information on these and other rulemaking statutes, see CRS Report RL32240, The Federal Rulemaking
Process: An Overview, by Curtis W. Copeland.
41 For more information on the operation of the Congressional Review Act, see CRS Report RL30116, Congressional
Review of Agency Rulemaking: An Update and Assessment of The Congressional Review Act after a Decade, by
Morton Rosenberg. See also CRS Report RL31160, Disapproval of Regulations by Congress: Procedure Under the
Congressional Review Act, by Richard S. Beth.
42 See CRS Report RL 34354, Congressional Influence on Rulemaking and Regulation Through Appropriations
Restrictions, by Curtis W. Copeland.
43 The President, Executive Order 12866, “Regulatory Planning and Review,” 58 Federal Register51735, October 4,
1993, Section 6(a). A “significant” regulatory action is defined in Section 3(f) as “Any regulatory action that is likely to
result in a rule that may (1) have an annual effect on the economy of $100 million or more or adversely affect in a
material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or
safety, or State, local, or tribal governments or communities; (2) create a serious inconsistency or otherwise interfere
with an action taken or planned by another agency; (3) materially alter the budgetary impact of entitlements, grants,
user fees, or loan programs or the rights and obligations of recipients thereof; or (4) raise novel legal or policy issues
arising out of legal mandates, the President’s priorities, or the principles set forth in the Executive order.” For more
(continued...)
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with the analytic requirements in the executive order, the statutes under which they are issued, the
President’s priorities, and the rules issued by other agencies. The executive order requires that the
agencies “propose or adopt a regulation only upon a reasoned determination that the benefits of
the intended regulation justify its costs.”44 Covered agencies are required to estimate the costs and
benefits of their “significant” rules, and to conduct a full cost-benefit analysis before issuing any
“economically significant” rule (e.g., one that is expected to have a $100 million annual impact
on the economy).45 That analysis is required to include an assessment of not only the underlying
benefits and costs, but also the costs and benefits of “potentially effective and reasonably feasible
alternatives to the planned regulation.”46
OIRA also plays a key role in implementing the requirements of the Paperwork Reduction Act
(PRA, 44 U.S.C. 3501-3520). The PRA created OIRA, and generally requires that agencies
receive OIRA approval for certain information collection requests before they are conducted.
Before approving a proposed collection of information, OIRA must determine whether the
collection is “necessary for the proper performance of the functions of the agency.”47 OIRA’s
information collection approvals must be renewed at least every three years if the agency wishes
to continue collecting the information.
Many Rulemaking Requirements, and Exceptions, Apply to CFPB
Rules
Many of the government-wide rulemaking requirements appear to apply to rulemaking by the
CFPB, but the exceptions and exemptions to those requirements also apply. For example, the
Administrative Procedure Act (APA, 5 U.S.C. 551 et seq.) generally requires that federal agencies
publish a notice of proposed rulemaking in the Federal Register, give “interested persons” an
opportunity to comment on the rule, consider those comments and publish a final rule with a
general statement of its basis and purpose, and make the final rule effective no less than 30 days
after its publication.48 However, the APA also says that these “notice and comment” procedures
do not apply when the agency finds, for “good cause,” that those procedures are “impracticable,
unnecessary, or contrary to the public interest.”49 Also, agencies can make their rules take effect
less than 30 days after they are published if there is “good cause.”50 Therefore, for example, if the
CFPB concludes that time constraints or other factors make public comments “impracticable,” the
agency can publish the final rule without a prior proposed rule or comment period. Agencies’ use
of the APA’s good cause exceptions are subject to judicial review.

(...continued)
information on OIRA and its review process, see CRS Report RL32397, Federal Rulemaking: The Role of the Office of
Information and Regulatory Affairs, by Curtis W. Copeland.
44 Section 1(b)(6) of Executive Order 12866. As the executive order and OMB Circular A-4 make clear, even under this
standard, the monetized benefits of a rule are not required to exceed the monetized costs of the rule before the agency
can issue the rule, only that the costs of the rule be “justified” by the benefits (quantitative or non-quantitative).
45 Section 6(a)(3)(C) of Executive Order 12866.
46 Section 6(a)(3)(C)(iii) of Executive Order 12866.
47 44 U.S.C. 3508.
48 5 U.S.C. 553.
49 5 U.S.C. 553(b)(3(B). These requirements also do not apply to interpretative rules, general statements of policy, or
rules of agency organization, procedure, or practice (5 U.S.C. 553(b)(A).
50 5 U.S.C. 553(d).
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Also, the Regulatory Flexibility Act (RFA, 5 U.S.C. 601-612) requires federal agencies to assess
the impact of their forthcoming rules on “small entities,” which includes small businesses, small
governmental jurisdictions, and small not-for-profit organizations.51 Under the RFA, federal
agencies must prepare a regulatory flexibility analysis at the time that proposed and certain final
rules are published in the Federal Register. The act requires the analyses to describe, among other
things, (1) why the regulatory action is being considered and its objectives; (2) the small entities
to which the rule will apply and, where feasible, an estimate of their number; (3) the projected
reporting, recordkeeping, and other compliance requirements of the rule; and, for final rules, (4)
steps the agency has taken to minimize the impact of the rule on small entities. However, these
requirements are not triggered if the head of the issuing agency certifies that the rule would not
have a “significant economic impact on a substantial number of small entities.” The RFA does not
define “significant economic impact” or “substantial number of small entities,” thereby giving
federal agencies substantial discretion regarding when the act’s analytical requirements are
initiated.52 Also, the RFA’s analytical requirements do not apply when an agency publishes a final
rule without publishing a prior proposed rule.53 Therefore, if the CFPB publishes a final rule
using the APA’s “good cause” exception, the RFA’s analytical requirements do not apply.
Some Rulemaking Requirements and Controls Are Not Applicable
to the CFPB
In addition to these exceptions and exclusions, some notable regulatory oversight mechanisms do
not appear to apply to the CFPB’s rules at all, or may be able to be voided by the Bureau. These
requirements are also not applicable to most, if not all, of the independent regulatory agencies
from whom rulemaking authorities were transferred.
Executive Order 12866
For example, most of the requirements in Executive Order 12866 do not apply to independent
regulatory agencies like the CFPB.54 Therefore, the Bureau does not have to submit its proposed
or final significant rules to OIRA for review before they are published. Also, CFPB does not have
to conduct cost-benefit analyses for its economically significant rules, and does not have to show
that the benefits of its significant rules “justify” the costs. Although Sections 1022 and 1041(c)(1)
of the Dodd-Frank Act require the Bureau to “consider” and “take into account” the potential
benefits and costs of its rules, these provisions appear to establish somewhat lower analytical
thresholds than the requirement in Executive Order 12866 that the benefits of agencies’ rules
“justify” the costs.

51 For more information on the RFA, see CRS Report RL34355, The Regulatory Flexibility Act: Implementation Issues
and Proposed Reforms, by Curtis W. Copeland.
52 Agencies’ interpretations of these phrases are, however, subject to judicial review (5 U.S.C. 611).
53 See 5 U.S.C. 603(a), which states that agencies must prepare initial regulatory flexibility analyses “whenever an
agency is required…to publish a general notice of proposed rulemaking for any proposed rule.” See also 5 U.S.C.
604(a), which requires agencies to prepare a final regulatory flexibility analysis when an agency publishes a final rule
“after being required…to publish a general notice of proposed rulemaking.”
54 Certain planning requirements in Section 4(b) and Section 4(c) regarding the “unified regulatory agenda” and the
“regulatory plan” apply to independent regulatory agencies. Generally, however, the executive order does not apply to
independent regulatory agencies.
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Paperwork Reduction Act
Also, although the Paperwork Reduction Act covers independent regulatory agencies like the
CFPB, and permits OIRA to disapprove their proposed collections of information, the Bureau
may be able to collect the information even if OIRA objects. The PRA states that
An independent regulatory agency which is administered by 2 or more members of a
commission, board, or similar body, may by majority vote void (A) any disapproval by the
Director (of OMB), in whole or in part, of a proposed collection of information of that
agency; or (B) an exercise of authority under subsection (d) of section 3507 concerning that
agency (regarding information collections that are part of a proposed rule).55
Although the CFPB is an independent regulatory agency, it is headed by a single director, not a
multi-member body. Therefore, this provision would not appear to apply to the Bureau. However,
Section 1100D(c) of the Dodd-Frank Act amends the PRA, and states that
Notwithstanding any other provision of law, the Director (of OMB) shall treat or review a
rule or order prescribed or proposed by the Director of the Bureau of Consumer Financial
Protection on the same terms and conditions as apply to any rule or order prescribed or
proposed by the Board of Governors of the Federal Reserve System.
Applying this subsection, because the Board of Governors, a multi-member board, is authorized
to void OIRA disapprovals of its information collections, the director of the CFPB may arguably
be authorized to do so as well.
Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act (UMRA) of 1995 was enacted in an effort to reduce the
costs associated with federal imposition of responsibilities, duties, and regulations upon state,
local, and tribal governments and the private sector without providing the funding appropriate to
the costs imposed by those responsibilities. Title II of UMRA (2 U.S.C. 1532-1538) generally
requires cabinet departments and other agencies to prepare a written statement containing specific
descriptions and estimates for any proposed rule that is expected to result in the expenditure of
$100 million or more in any year to state, local, or tribal governments, or to the private sector.
However, UMRA does not apply to independent regulatory agencies, and therefore does not apply
to any of the CFPB’s rules. Even if UMRA did apply to the CFPB, UMRA contains so many
other exceptions and exclusions that its requirements might not apply to most of the agency’s
rules.56
Appropriations Restrictions
Appropriations restrictions may also be unavailable as a way for Congress to control the Bureau’s
rulemaking. As noted earlier in this report, the CFPB is funded (up to certain caps) using money
from the combined earnings of the Federal Reserve System, and the Dodd-Frank Act states that

55 44 U.S.C. 3507(f)(1).
56 See, for example, U.S. General Accounting Office, Unfunded Mandates: Analysis of Reform Act Coverage, GAO-04-
637, May 12, 2004.
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those funds are not reviewable by either the House or the Senate appropriations committees.57
Therefore, since the Bureau might not receive appropriated funds, Congress may not be able to
encourage or restrict rulemaking through the kinds of appropriations restrictions that it has
frequently used with regard to other agencies’ rules.
Effectiveness of New Rulemaking Requirements Depends on How
the Bureau Interprets Key Terms
The Dodd-Frank Act made three amendments to the Regulatory Flexibility Act, adding
requirements that are particular to the CFPB. Also, as noted previously, the Dodd-Frank Act
requires the Bureau to examine certain rules within five years of their issuance. The effectiveness
of these new rulemaking requirements may depend on how the CFPB interprets certain key terms.
Regulatory Flexibility Act Amendments
As noted previously in this report, the RFA requires all covered federal agencies (including
independent regulatory agencies like the CFPB) to conduct a “regulatory flexibility analysis”
before publishing any proposed or final rule that is expected to have a “significant economic
impact on a substantial number of small entities.” Section 1100G(b) of the Dodd-Frank Act adds
a Bureau-specific provision to the government-wide requirements for proposed rule analyses,
stating that the CFPB must also describe
(A) any projected increase in the cost of credit for small entities; (B) any significant
alternatives to the proposed rule which accomplish the stated objectives of applicable statutes
and which minimize any increase in the cost of credit for small entities; and (C) advice and
recommendations of representatives of small entities relating to issues described in
subparagraphs (A) and (B) and (the initial regulatory flexibility analysis).
Also, Section 1100G(c) of the Dodd-Frank Act adds a Bureau-specific requirement to the existing
requirements for a final rule analysis, stipulating that the Bureau must include “a description of
the steps the agency has taken to minimize any additional cost of credit for small entities.”
Since 1996, the RFA has required the Environmental Protection Agency and the Occupational
Safety and Health administration to hold “advocacy review panels” before developing proposed
rules that are expected to have a “significant economic impact on a substantial number of small
entities.”58 Section 1100G(a) of the Dodd-Frank Act amended the RFA and requires the CFPB to
hold such panels as well.
However, the CFPB does not have to convene an advocacy review panel or conduct an RFA
analysis if it issues a final rule without a prior notice of proposed rulemaking (e.g., by using the
APA’s “good cause” exception), or if it certifies that the rule is not expected to have a “significant
economic impact on a substantial number of small entities.” Because the RFA does not define the
terms “significant economic impact” or “substantial number of small entities,” the CFPB, like

57 Section 1017. However, if the director of the CFPB determines that these unappropriated funds are insufficient, the
Dodd-Frank Act authorizes appropriations of up to $200 million per year for FY2010 through FY2014. Appropriations
restrictions could be added to any such appropriated funds.
58 5 U.S.C. 609.
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other federal agencies, will have a substantial amount of discretion regarding when the act’s
requirements are triggered.
“Lookback” Requirement
The previously mentioned “lookback” provision in Section 1022(d) of the Dodd-Frank Act
requires that the CFPB examine and report on the effectiveness of its “significant’ rules and
orders within five years of their issuance. However, Section 1022(d) does not define what rules
should be considered “significant,” and does not indicate how “effectiveness” should be
measured. Therefore, the Bureau appears to have considerable discretion in determining which
rules will have to be reviewed, and whether they will be considered “effective” or not.
Also, although the Dodd-Frank Act requires the Bureau to allow the public to comment before
publishing its report, those comments are only required regarding any recommendations for
modifying, expanding, or eliminating a rule or order. Thus, if the Bureau determines that a rule is
effective, and therefore decides not to change the rule, the act does not appear to require public
comments.
Oversight Council is Permitted to ”Stay” or “Set
Aside” CFPB Regulations
Although certain regulatory oversight mechanisms appear to be inapplicable or subject to
interpretation by the CFPB, the Dodd-Frank Act establishes a new oversight mechanism that is
arguably more powerful than any that had previously existed. Section 1023 of the act (“Review of
Bureau Regulations”) puts in place a procedure by which a Bureau rule, or a provision thereof,
can be stayed or “set aside” by the newly-established Financial Stability Oversight Council if the
Council concludes that the regulation or provision would “put the safety and soundness of the
United States banking system or the ability of the financial system of the United States at risk.”59
The Financial Stability Oversight Council was established by Section 111 of the Dodd-Frank Act.
Voting members of the Council are (1) the Secretary of the Treasury, who serves as Chairperson
of the Council; (2) the Chairman of the Board of Governors; (3) the Comptroller of the Currency;
(4) the Director of the Bureau; (5) the Chairman of the Securities and Exchange Commission; (6)
the Chairperson of the Federal Deposit Insurance Corporation; (7) the Chairperson of the
Commodity Futures Trading Commission; (7) the Director of the Federal Housing Finance
Agency; (8) the Chairman of the National Credit Union Administration Board; and (9) “an
independent member appointed by the President, by and with the advice and consent of the
Senate, having insurance expertise.” Nonvoting members are (A) the Director of the Office of
Financial Research within the Department of the Treasury;60 (B) the Director of the Federal
Insurance Office within the Department of the Treasury;61 (C) “a State insurance commissioner, to
be designated by a selection process determined by the State insurance commissioners”; (D) “a
State banking supervisor, to be designated by a selection process determined by the State banking

59 Section 1023(a).
60 The Office of Financial Research was established by Section 152 of the Dodd-Frank Act.
61 The Federal Insurance Office was established by Section 502 of the Dodd-Frank Act.
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Regulations to be Issued by the Consumer Financial Protection Bureau

supervisors”; and (E) “a State securities commissioner (or an officer performing like functions),
to be designated by a selection process determined by such State securities commissioners.”
Section 1023(b) states that an “agency represented by a member of the Council” may petition the
Council in writing to stay the effectiveness or set aside a Bureau regulation.62 First, however, the
agency must have, “in good faith,” attempted to work with the Bureau to resolve its concerns
regarding the effect of the rule on the banking or financial systems. Also, the petition must have
been filed within 10 days after the rule was published in the Federal Register, and the petition
must be published in the Federal Register and transmitted “contemporaneously” to the Senate
Committee on Banking, Housing, and Urban Affairs, and to the House Committee on Financial
Services.
If any “member agency” of the Council so requests, the Chairperson is permitted to stay the
effectiveness of a CFPB rule for up to 90 days to permit the Council to consider the petition.63 A
decision to issue a stay of, or to set aside, a Bureau rule requires an affirmative vote by two-thirds
“of the Members of the Council then serving,” and must be taken within 45 days following the
date the petition is filed, or by the expiration of a stay issued by the Council, whichever is later.64
A decision by the Council to set aside a rule (or a provision therein) renders it “unenforceable,”
and the Council must publish that decision and its reasoning in the Federal Register “as soon as
practicable after the decision.”65 The Council’s decision to set aside a rule or a provision thereof
is subject to judicial review under Chapter 7 of Title 5, United States Code.66
Unique Authority
The authority of the Financial Stability Oversight Council to stay or “set aside” final rules issued
by the CFPB is unique. No other agency or organization in the executive branch of the federal
government is currently permitted to unilaterally stop or nullify another agency’s published final
rule. Executive Order 12866 allows OIRA within OMB to return a covered agency’s draft rule to
the agency for “reconsideration” before it is published, but the executive order does not permit
OIRA to simply “set aside” an agency’s published final rule.
Also, Section 1023 permits the Council to revoke either an entire final rule or a “provision
thereof.” In this respect, the Council’s authority is greater than the expedited disapproval
authority that Congress granted to itself through the Congressional Review Act, which only
permits revocation of final rules in their entirety.67 (Congress could, of course, use its regular
legislative authority to disapprove all or part of a CFPB rule.)

62 Because only agencies who are “represented by members of the Council” can file petitions to stay or set aside rules,
the member appointed by the President does not appear able to file a petition, since this member is supposed to be
“independent” and does not represent an agency on the Council.
63 Section 1023(c)(1). Section 102(a)(3) defines a “member agency” as a voting member of the Council
64 Section 1023(c)(3).
65 Section 1023(c)(4).
66 Section 1023(c)(8).
67 For more information on the operation of the Congressional Review Act, see CRS Report RL30116, Congressional
Review of Agency Rulemaking: An Update and Assessment of The Congressional Review Act after a Decade, by
Morton Rosenberg.
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The Dodd-Frank Act does not provide any procedure by which the actions of the Council can be
checked by the President or Congress. Nevertheless, if Congress and the President wanted a
revoked Bureau rule to go into effect, legislation could be enacted that would reverse the
Council’s decision and/or place the rule in statute. Also, Section 1023(c)(8) of the Dodd-Frank
Act subjects a Council revocation to judicial review.
It is notable that the voting members of the Financial Stability Oversight Council are the heads of
the agencies from which the CFPB’s consumer protection rulemaking and enforcement
authorities were drawn. Therefore, these prudential regulatory agencies, relieved of most of their
consumer protection functions, will potentially be able to stop the Bureau’s consumer protection
regulations if they conclude, by a two-thirds vote, that those regulations would put the banking or
financial systems “at risk.”
There are several aspects of the Council’s revocation procedures that are currently unclear. For
example:
• Before filing a petition, an agency must have acted “in good faith” to resolve its
concerns regarding the effect of the rule on the banking or financial systems. It is
unclear who determines whether the agency has, in fact, acted “in good faith,” or
what types of actions will be considered to meet that standard.
• The act states that the chairperson of the Council is permitted to stay the
effectiveness of any rule for up to 90 days, upon a request by a “member
agency.” However, the statute also says that a decision to stay a rule requires an
affirmative vote by two-thirds of the Council. It is unclear whether the
chairperson can stay a rule for 90 days without such a vote.
• The act states that the Council can void a CFPB final rule if it concludes that it
would put the safety and soundness of the banking or financial systems “at risk,”
but it is not clear what types of rules would meet that standard.
• Also, as discussed in the final section of this report on “Oversight Options,” it is
unclear whether the Council’s decision to set aside a CFPB rule is, itself, a “rule”
that must be submitted to Congress under the Congressional Review Act, and that
can be disapproved by Congress using the expedited procedures contained
therein.
Concluding Observations
Although Titles X and XIV of the Dodd-Frank Act contain more than 50 provisions that
specifically require or permit the CFPB to issue regulations, the actual number of rules that will
be issued by the Bureau pursuant to the act’s authority is currently unknowable. For example:
• About 20 sections in the act specifically require that the CFPB issue rules, but the
agency may issue multiple rules under a single provision.
• Other sections of the act allow the Bureau to promulgate such rules “as may be
necessary” to implement those sections, including the broad rulemaking authority
provided in Section 1022(b)(1). Therefore, subject to the consultation and
considerations attendant to this provision (as well as the constraints of applicable
government-wide rulemaking requirements), the CFPB will arguably be able to
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Regulations to be Issued by the Consumer Financial Protection Bureau

issue whatever rules it decides are “necessary or appropriate,” even if no other
sections of the statute provided specific rulemaking authority. On the other hand,
the Bureau may decide to issue no new rules under these types of authorities.
• Still other sections of the Dodd-Frank Act do not mention rulemaking at all, but
may be implemented through CFPB rules.68
• Section 1063 of the Dodd-Frank Act makes the CFPB responsible for certain
rules that have been issued by an agency transferring consumer protection
functions to the Bureau, any proposed rule that a transferor agency has not made
final as of the designated transfer date, and any final rule issued by a transferor
agency that has not taken effect. It is currently unclear how many rules that the
Bureau will assume pursuant to these provisions, or how many amendments to
those transferred rules that the Bureau will issue in the future.
Because of these and other factors, efforts to determine with precision how many rulemaking
provisions are in the statute seem misplaced, for they will not necessarily provide useful clues as
to how many or what type of rules the Bureau is likely to issue.
Congressional Oversight Options
Even though it is impossible to predict with any certainty what rules the CFPB will issue, it is
clear that the Bureau has been given significant rulemaking authority. However, several of the
mechanisms that have been used for decades to oversee and control rulemaking do not appear to
be available with regard to the CFPB. The substance of the Bureau’s significant rules will not be
reviewed by OIRA under Executive Order 12866, it appears that the Bureau can void OIRA
disapprovals of its collections of information under the PRA, and Congress may not be able to
require or restrict rulemaking in particular areas through appropriation restrictions (because the
Bureau, at least initially, may not receive appropriated funds). Also, the effectiveness of
provisions in the Dodd-Frank Act that increased the Bureau’s requirements under the RFA, as
well as a provision requiring an evaluation of the Bureau’s rules within five years of their
issuance, appear dependent on how the CFPB interprets those provisions.
Nevertheless, Congress still has a number of oversight tools available to affect the nature of
CFPB rulemaking, including
• confirmation hearings for the still-to-be-selected director of the Bureau;
• oversight hearings on the Bureau’s implementation of the act; and
• meetings between individual Members and representatives of the Bureau
regarding pending rules, and filing comments on the rules.69

68 The recent experience of rules issued pursuant to the recent health care reform legislation is instructive in this regard.
The Patient Protection and Affordable Care Act (PPACA, P.L. 111-148, March 23, 2010) contained more than 40
provisions that required, permitted, or otherwise mentioned rulemaking. However, of the 10 final rules issued during
the first four months of PPACA’s implementation, 7 of them were not specifically required or mentioned in the act. See
CRS Report R41346, PPACA Regulations Issued During the First Four Months of the Act’s Implementation, by Curtis
W. Copeland.
69 In Sierra Club v. Costle (657 F.2d 298, D.C. Cir. 1981), the D.C. Circuit concluded (at 409) that it was “entirely
proper for congressional representatives vigorously to represent the interests of their constituents before administrative
agencies engaged in informal, general policy rulemaking, so long as the individual Members of Congress do not
(continued...)
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As one author indicated,
[I]nvestigations conducted by congressional committees constitute another powerful device
of formal political supervision…. The public legislative hearings, in which administrative
action is carefully scrutinized and a commissioner or staff member is plied with questions,
symbolizes the unparalleled sophistication of American congressional control over
administrative action, in general and by [independent regulatory agencies], in particular.
Individual oversight by representatives or senators also takes place. Through correspondence
or meetings, the latter convey the concerns of their constituents.70
Congressional Review Act
Another congressional oversight option regarding the Bureau’s rules is the Congressional Review
Act, which was enacted in 1996 in an attempt to reestablish a measure of congressional authority
over rulemaking “without at the same time requiring Congress to become a super regulatory
agency.”71 The act generally requires all federal agencies (including independent regulatory
agencies) to submit all of their covered final rules to both houses of Congress and GAO before
they can take effect.72 It also established expedited legislative procedures (primarily in the Senate)
by which Congress may disapprove agencies’ final rules by enacting a joint resolution of
disapproval.73 The definition of a covered rule in the CRA is quite broad, arguably including any
type of document (e.g., legislative rules, policy statements, guidance, manuals, and memoranda)
that the agency wishes to make binding on the affected public.74 After a rule is submitted,
Congress can use the expedited procedures specified in the CRA (particularly in the Senate) to
disapprove of the rule. CRA resolutions of disapproval must be presented to the President for
signature or veto.
For a variety of reasons, however, the CRA has been used to disapprove only one rule in the more
than 14 years since it was enacted.75 Perhaps most notably, it is likely that a President would veto
a resolution of disapproval to protect rules developed under his own administration, and it may be
difficult for Congress to muster the two-thirds vote in both houses needed to overturn the veto.
Congress can also use regular (i.e., non-CRA) legislative procedures to disapprove agencies’

(...continued)
frustrate the intent of Congress as a whole as expressed in statute, nor undermine applicable rules of procedure.”
70 Dominique Custos, “The Rulemaking Power of Independent Regulatory Agencies,” The American Journal of
Comparative Law, vol. 54 (Fall 2006), p. 633.
71 Joint statement of House and Senate Sponsors, 142 Cong. Rec. E571, at E571 (daily ed. April 19, 1996); 142 Cong.
Rec. S3683, at S3683 (daily ed. April 18, 1996).
72 If a rule is considered “major” (e.g., has a $100 million annual effect on the economy), then the CRA generally
prohibits it from taking effect until 60 days after the date that it is submitted to Congress.
73 For a detailed discussion of CRA procedures, see CRS Report RL31160, Disapproval of Regulations by Congress:
Procedure Under the Congressional Review Act, by Richard S. Beth.
74 For more on the potential scope of the definition of a “rule” under the CRA, see CRS Report RL30116,
Congressional Review of Agency Rulemaking: An Update and Assessment of The Congressional Review Act after a
Decade, by Morton Rosenberg.
75 The rule overturned in March 2001 was the Occupational Safety and Health Administration’s ergonomics standard.
This reversal was the result of a unique set of circumstances in which the incoming President (George W. Bush) did not
veto the resolution disapproving the outgoing President’s (William J. Clinton’s) rule. See CRS Report RL30116,
Congressional Review of Agency Rulemaking: An Update and Assessment of The Congressional Review Act after a
Decade, by Morton Rosenberg, for a description of several possible factors affecting the CRA’s use, and for other
effects that the act may have on agency rulemaking.
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rules, but such legislation may prove even more difficult to enact than a CRA resolution of
disapproval (primarily because of the lack of expedited procedures in the Senate), and if enacted
may also be vetoed by the President. These difficulties notwithstanding, even if the use of the
CRA does not result in the disapproval of a rule, just the threat of filing of a resolution of
disapproval can sometimes exert pressure on agencies to modify or withdraw their rules.76
Are Council Decisions “Rules” Under the CRA?
Although it is clear that the Bureau’s rules are subject to the CRA, it is not clear whether a
decision by the Financial Stability Oversight Council to “set aside” a Bureau rule is, itself, a
“rule” under the CRA. Section 1023(c)(6) of the Dodd-Frank Act requires the Council’s decisions
to stay or set aside a rule be published in the Federal Register, and Section 1023(c)(7) states that
the APA’s notice and comment rulemaking procedures (5 U.S.C. 553) “shall not apply” to such
decisions. Notably, however, the act does not state that the Council’s decisions are not rules under
Section 551 of the APA, and says that a Council decision to set aside a Bureau regulation is
subject to judicial review (i.e., in the same manner as an agency rule would be). On the other
hand, it is not clear that Congress intended the Council’s actions to be considered “rules” that
could be disapproved using CRA procedures. The Council itself appears to have been delegated
no specific rulemaking authority.
If the Council’s action to stay or set aside a Bureau rule is itself a rule, then it would have to be
submitted to GAO and both houses of Congress before it could take effect, and Congress could
use the expedited procedures in the CRA to disapprove of the Council’s action. On the other hand,
if the Council’s action is not a rule, then Congress would have to use regular legislative
procedures to revoke the Council’s action, or to put the Bureau’s revoked rule into law.

76 See CRS Report RL30116, Congressional Review of Agency Rulemaking: An Update and Assessment of The
Congressional Review Act after a Decade, by Morton Rosenberg, for a description of instances in which the filing of a
resolution of disapproval had an effect on agencies’ decisions.
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Appendix. Regulations to Be Issued by the Consumer Financial Protection
Bureau
Section
Text of the Provision
Other Agencies
Deadlines for Rules
Mandatory Regulations (e.g., “shall prescribe rules ... ”)
Section 1022(c)(6)(A)
“…shall prescribe rules regarding the
None None
confidential treatment of information
obtained from persons in connection with
the exercise of its authorities under
Federal consumer financial law.”
Section 1024(a)(2)
“…shal consult with the Federal Trade
Consultation with the Federal Trade
“Initial rule” required within one year after
Commission prior to issuing a rule, in
Commission
the designated transfer date.
accordance with paragraph (1)(B), to
define covered persons subject to this
section…” (on “Supervision of
Nondepository Covered Persons”).
Section 1024(b)(7)(A)
“ ... shall prescribe rules to facilitate
None None
supervision of persons described in
subsection (a)(1) and assessment and
detection of risks to consumers.”
Section 1025(e)(4)(E)
“…shall prescribe rules to provide
Rules to be issued with the “prudential
None
safeguards from retaliation against the
regulators.”
insured depository institution, insured
credit union, or other covered person
described in subsection (a) instituting an
appeal under this paragraph, as wel as
their officers and employees.”
Section 1033(d)
“…by rule, shal prescribe standards
None None
applicable to covered persons to promote
the development and use of standardized
formats for information, including through
the use of machine readable files, to be
made available to consumers under this
section” (on “Consumer Rights to Access
Information”).
CRS-24

Section
Text of the Provision
Other Agencies
Deadlines for Rules
Section 1035(c)
“The Ombudsman designated under this
None None
subsection (re private education loans)
shall…in accordance with regulations of
the Director, receive, review, and attempt
to resolve informally complaints from
borrowers of loans described in
subsection (a), including, as appropriate,
attempts to resolve such complaints in
collaboration with the Department of
Education and with institutions of higher
education, lenders, guaranty agencies, loan
servicers, and other participants in private
education loan programs.”
Section 1041(c)(1)
“The Bureau shall issue a notice of
Impetus for rulemaking is the enactment
None
proposed rulemaking whenever a majority
of resolutions by a majority of the States.

of the States has enacted a resolution in
support of the establishment or
modification of a consumer protection
regulation by the Bureau.”
Section 1042(c)
“…shall prescribe regulations to
None None
implement the requirements of this
section…” (on “Preservation of
Enforcement Powers of the States”).
Section 1053(e)
“…shal prescribe rules establishing such
None None
procedures as may be necessary to carry
out this section” (on “Hearings and
Adjudication Proceedings”).
Section 1071(a) (amending the Equal
“Each financial institution shall compile and None None
Credit Opportunity Act (15 U.S.C.
maintain, in accordance with regulations of
1691 et seq.))
the Bureau, a record of the information
provided by any loan applicant pursuant to
a request under subsection (b).”
CRS-25

Section
Text of the Provision
Other Agencies
Deadlines for Rules
Section 1071(a) (amending the Equal
“Information compiled and maintained
None None
Credit Opportunity Act (15 U.S.C.
under this section (“Small Business Loan
1691 et seq.))
Data Collection”) shall be—(A) retained
for not less than 3 years after the date of
preparation; (B) made available to any
member of the public, upon request, in the
form required under regulations
prescribed by the Bureau; (C) annual y
made available to the public generally by
the Bureau, in such form and in such
manner as is determined by the Bureau, by
regulation.”
Section 1079(c)
“…shall, consistent with subtitle B
None
Rule or program must be established
(“General Powers of the Bureau”),
within two years after the submission of a
propose regulations or otherwise establish
report (which is required within one year
a program to protect consumers who use
of the transfer date).
exchange facilitators.”
Section 1083(a) (amending the
Bureau is required to determine whether
None
Regulations to be promulgated “after the
Alternative Mortgage Transaction
the existing regulations applicable under
designated transfer date.”
Parity Act of 1982 (12 U.S.C. 3801 et
paragraphs (1) through (3) of subsection
seq.))
(a) are “fair and not deceptive and
otherwise meet the objectives of the
Consumer Financial Protection Act of
2010,” and “(3) promulgate regulations
under subsection (a)(4)….”
Section 1084 (amending the Electronic “ ... shall prescribe rules to carry out the
None None
Fund Transfer Act (15 U.S.C. 1693 et
purposes of this title” (with certain
seq.)
exceptions).
Section 1088(a)(9) (amending the Fair
“…shall prescribe rules to carry out this
None None
Credit Reporting Act (15 U.S.C. 1681
subsection” (on amendments to the Fair
et seq.)
Credit Reporting Act).
CRS-26

Section
Text of the Provision
Other Agencies
Deadlines for Rules
Section 1088(a)(11)(C) (amending the
“…shall, with respect to persons or
None None
Fair Credit Reporting Act (15 U.S.C.
entities that are subject to the
1681 et seq.))
enforcement authority of the Bureau
under section 621…prescribe regulations
requiring each person that furnishes
information to a consumer reporting
agency to establish reasonable policies and
procedures for implementing the
guidelines established pursuant to
subparagraph (A).”
Section 1088(b)(3)
“Regulations to carry out section 624 of
Rules to be issued by (1) the Commodity
None
the Fair Credit Reporting Act (15 U.S.C.
Futures Trading Commission, with respect
1681s-3), shal be prescribed, as described
to entities subject to its enforcement
in paragraph (2), by….”
authorities; (2) the Securities and
Exchange Commission, with respect to
entities subject to its enforcement
authorities; (3) the Bureau, with respect to
other entities subject to this legislation.
Section 1094(3)(B) (amending the
“…, shall develop regulations that (A)
Rule to be developed in consultation with
None
Home Mortgage Disclosure Act of
prescribe the format for such disclosures,
“appropriate banking agencies,” the
1975 (12 U.S.C. 2801 et seq.))
the method for submission of the data to
Federal Deposit Insurance Corporation,
the appropriate agency, and the
the National Credit Union Administration
procedures for disclosing the information
Board, and the Secretary of Housing and
to the public; (B) require the collection of
Urban Development.
data required to be disclosed under
subsection (b) with respect to loans sold
by each institution reporting under this
title; (C) require disclosure of the class of
the purchaser of such loans; (D) permit
any reporting institution to submit in
writing to the Bureau or to the
appropriate agency such additional data or
explanations as it deems relevant to the
decision to originate or purchase
mortgage loans; and (E) modify or require
modification of itemized information, for
the purpose of protecting the privacy
interests of the mortgage applicants or
mortgagors, that is or will be available to
the public.”
CRS-27

Section
Text of the Provision
Other Agencies
Deadlines for Rules
Section 1094(3)(F) (amending the
“The data required to be disclosed under
None None
Home Mortgage Disclosure Act of
subsection (b) shal be submitted to the
1975 (12 U.S.C. 2801 et seq.))
Bureau or to the appropriate agency for
any institution reporting under this title, in
accordance with regulations prescribed by
the Bureau.”
Section 1463(a) (amending Section 6
“A servicer of a federally related mortgage None
Per Section 1400(c), final rule to be
of the Real Estate Settlement
shal not…charge fees for responding to
published within 18 months after
Procedures Act of 1974 (12 U.S.C.
valid qualified written requests (as defined
designated transfer date, and to take effect
2605))
in regulations which the Bureau of
within 12 months after issuance.
Consumer Financial Protection shall
prescribe) under this section” (or) “fail to
comply with any other obligation found by
the Bureau of Consumer Financial
Protection, by regulation, to be
appropriate to carry out the consumer
protection purposes of this Act.”
Section 1471 (amending Chapter 2 of
“…shall jointly prescribe regulations to
Rule to be issued jointly with the Board of
Per Section 1400(c), final rule to be
the Truth in Lending Act (15 U.S.C.
implement this section” (“Property
Governors, Comptroller of the Currency,
published within 18 months after
1631 et seq.))
Appraisal Requirements”). It goes on to
Federal Deposit Insurance Corporation,
designated transfer date, and to take effect
say that the agencies “may jointly exempt,
National Credit Union Administration
within 12 months after issuance.
by rule, a class of loans from the
Board, and the Federal Housing Finance
requirements of this subsection or
Agency
subsection (a) if the agencies determine
that the exemption is in the public interest
and promotes the safety and soundness of
creditors.”
Section 1473(f)(2) (amending Title XI
“…shall jointly, by rule, establish minimum
Rule to be issued jointly with the Board of
Per Section 1400(c), final rule to be
of the Financial Institutions Reform,
requirements to be applied by a State in
Governors, the Comptrol er of the
published within 18 months after
Recovery, and Enforcement Act of
the registration of appraisal management
Currency, the Federal Deposit Insurance
designated transfer date, and to take effect
1989 (12 U.S.C. 3331 et seq.))
companies.”
Corporation, the National Credit Union
within 12 months after issuance.
Administration Board, and the Federal
Housing Finance Agency
CRS-28

Section
Text of the Provision
Other Agencies
Deadlines for Rules
Section 1473(f)(2) (amending Title XI
“…shall jointly promulgate regulations for
Rule to be issued jointly with the Board of
Per Section 1400(c), final rule to be
of the Financial Institutions Reform,
the reporting of the activities of appraisal
Governors of the Federal Reserve System, published within 18 months after
Recovery, and Enforcement Act of
management companies to the Appraisal
the Comptrol er of the Currency, the
designated transfer date, and to take effect
1989 (12 U.S.C. 3331 et seq.))
Subcommittee in determining the payment
Federal Deposit Insurance Corporation,
within 12 months after issuance.
of the annual registry fee.”
the National Credit Union Administration
Board, and the Federal Housing Finance
Agency
Section 1473(q) (amending Title XI of
“…shall promulgate regulations to
Rule to be issued jointly with the Board of
Per Section 1400(c), final rule to be
the Financial Institutions Reform,
implement the quality control standards
Governors, the Comptrol er of the
published within 18 months after
Recovery, and Enforcement Act of
required under this section” (on
Currency, the Federal Deposit Insurance
designated transfer date, and to take effect
1989 (12 U.S.C. 3331 et seq.))
automated valuation models used to
Corporation, the National Credit Union
within 12 months after issuance.
estimate collateral value for mortgage
Administration Board, and the Federal
lending purposes).
Housing Finance Agency, in consultation
with the staff of the Appraisal
Subcommittee and the Appraisal Standards
Board of the Appraisal Foundation
Discretionary Regulations (e.g., “may prescribe rules…”)
Section 1002(9)
The term “deposit-taking activity” includes None None
“the receipt of funds or the equivalent
thereof, as the Bureau may determine by
rule or order, received or held by a
covered person (or an agent for a covered
person) for the purpose of facilitating a
payment or transferring funds or value of
funds between a consumer and a third
party.”
CRS-29

Section
Text of the Provision
Other Agencies
Deadlines for Rules
Section 1002(15)(A)
The definition of the term “financial
None None
product or service” includes “…such
other financial product or service as may
be defined by the Bureau, by regulation,
for purposes of this title, if the Bureau
finds that such financial product or service
is—(I) entered into or conducted as a
subterfuge or with a purpose to evade any
Federal consumer financial law; or (II)
permissible for a bank or for a financial
holding company to offer or to provide
under any provision of a Federal law or
regulation applicable to a bank or a
financial holding company, and has, or
likely will have, a material impact on
consumers.”
Section 1002(25)
The definition of a “related person”
None None
includes “any shareholder, consultant, joint
venture partner, or other person, as
determined by the Bureau (by rule or on a
case-by-case basis) who material y
participates in the conduct of the affairs of
such covered person.”
Section 1022(b)(1)
“…may prescribe rules and issue orders
None None
and guidance, as may be necessary or

appropriate to enable the Bureau to
administer and carry out the purposes and
objectives of the Federal consumer
financial laws, and to prevent evasions
thereof.”
CRS-30

Section
Text of the Provision
Other Agencies
Deadlines for Rules
Section 1022(b)(3)(A)
“…by rule, may conditional y or
None None
unconditional y exempt any class of
covered persons, service providers, or
consumer financial products or services,
from any provision of this title, or from
any rule issued under this title, as the
Bureau determines necessary or
appropriate to carry out the purposes and
objectives of this title, taking into
consideration the factors in subparagraph
(B).”
Section 1022(c)(4)(B)
“…may…require covered persons and
None None
service providers participating in
consumer financial services markets to file
with the Bureau, under oath or otherwise,
in such form and within such reasonable
period of time as the Bureau may
prescribe by rule or order, annual or
special reports, or answers in writing to
specific questions, furnishing information
described in paragraph (4), as necessary
for the Bureau to fulfill the monitoring,
assessment, and reporting responsibilities
imposed by Congress.”
Section 1022(c)(5)
“In order to assess whether a
None None
nondepository is a covered person, as
defined in section 1002, the Bureau may
require such nondepository to file with
the Bureau, under oath or otherwise, in
such form and within such reasonable
period of time as the Bureau may
prescribe by rule or order, annual or
special reports, or answers in writing to
specific questions.”
Section 1022(c)(7)(A)
“…may prescribe rules regarding
None None
registration requirements applicable to a
covered person, other than an insured
depository institution, insured credit
union, or related person.”
CRS-31

Section
Text of the Provision
Other Agencies
Deadlines for Rules
Section 1024(b)(7)(C)
“…may prescribe rules regarding a person
None None
described in subsection (a)(1), to ensure
that such persons are legitimate entities
and are able to perform their obligations
to consumers. Such requirements may
include background checks for principals,
officers, directors, or key personnel and
bonding or other appropriate financial
requirements.”
Section 1027(b)(2)
“…may exercise rulemaking, supervisory,
None None
enforcement, or other authority under
this title with respect to a person
described in paragraph (1) when such
person is (A) engaged in an activity of
offering or providing any consumer
financial product or service…or (B)
otherwise subject to any enumerated
consumer law or any law for which
authorities are transferred under subtitle F
or H….”
Section 1027(g)(3)(B)(iii)
“Subject to a request or response
None None
pursuant to clause (i) or clause (i ) by the
agencies made under this subparagraph
(Departments of the Treasury and Labor),
the Bureau may exercise rulemaking
authority, and may act to enforce a rule
prescribed pursuant to such request or
response, in accordance with the
provisions of this title.”
Section 1031(b)
“…may prescribe rules applicable to a
None None
covered person or service provider
identifying as unlawful unfair, deceptive, or
abusive acts or practices in connection
with any transaction with a consumer for a
consumer financial product or service, or
the offering of a consumer financial
product or service. Rules under this
section may include requirements for the
purpose of preventing such acts or
practices.”
CRS-32

Section
Text of the Provision
Other Agencies
Deadlines for Rules
Section 1032(a)
“…may prescribe rules to ensure that the
None None
features of any consumer financial product
or service, both initially and over the term
of the product or service, are ful y,
accurately, and effectively disclosed to
consumers in a manner that permits
consumers to understand the costs,
benefits, and risks associated with the
product or service, in light of the facts and
circumstances.”
Section 1057(d)(3)
“…an arbitration provision in a collective
None None
bargaining agreement shal be enforceable
as to disputes arising under subsection
(a)(4), unless the Bureau determines, by
rule, that such provision is inconsistent
with the purposes of this title.”
Section 1071(a) (amending the Equal
“…shall prescribe such rules and issue
None None
Credit Opportunity Act (15 U.S.C.
such guidance as may be necessary to
1691 et seq.))
carry out, enforce, and compile data
pursuant to this section” (on small
business data collection).
Section 1071(a) (amending the Equal
“…by rule or order, may adopt
None None
Credit Opportunity Act (15 U.S.C.
exceptions to any requirement of this
1691 et seq.))
section (on small business data collection)
and may, conditionally or unconditionally,
exempt any financial institution or class of
financial institutions from the
requirements of this section, as the Bureau
deems necessary or appropriate to carry
out the purposes of this section.”
Section 1076(b)
The Bureau should issue rules if it
None
Study must be conducted within one year
“determines through the study required
of enactment (i.e., by July 21, 2011), but
under subsection (a) (on reverse mortgage
no deadline established for possible
transactions) that conditions or limitations
regulations.
on reverse mortgage transactions are
necessary or appropriate for
accomplishing the purposes and objectives
of this title….”
CRS-33

Section
Text of the Provision
Other Agencies
Deadlines for Rules
Section 1088(a) (amending the Fair
Prohibits the treatment of information as a Rule to be issued by the Bureau or
None
Credit Reporting Act (15 U.S.C. 1681
consumer report if it is disclosed as
applicable state insurance authorities
et seq.))
“…determined to be necessary and
appropriate, by regulation or order, by the
Bureau or the applicable State insurance
authority (with respect to any person
engaged in providing insurance or
annuities).”
Section 1088(a)(4)(B) (amending the
“…may, after notice and opportunity for
None None
Fair Credit Reporting Act (15 U.S.C.
comment, prescribe regulations that
1681 et seq.))
permit transactions under paragraph (2)
that are determined to be necessary and
appropriate to protect legitimate
operational, transactional, risk, consumer,
and other needs….”
Section 1088(a)(10)(E) (amending the
“…shall prescribe such regulations as are
None None
Fair Credit Reporting Act (15 U.S.C.
necessary to carry out the purposes of
1681 et seq.))
this title, except with respect to sections
615(e) and 628. The Bureau may prescribe
regulations as may be necessary or
appropriate to administer and carry out
the purposes and objectives of this title,
and to prevent evasions thereof or to
facilitate compliance therewith.”
Section 1089(4) (amending the Fair
“Except as provided in section 1029(a) of
None None
Debt Col ection Practices Act (15
the Consumer Financial Protection Act of
U.S.C. 1692 et seq.))
2010, the Bureau may prescribe rules with
respect to the collection of debts by debt
collectors, as defined in this title.”
CRS-34

Section
Text of the Provision
Other Agencies
Deadlines for Rules
Section 1093 (amending Title V of the
“…shal have authority to prescribe such
Bureau and the Securities and Exchange
None
Gramm-Leach-Bliley Act (15 U.S.C.
regulations as may be necessary to carry
Commission authorized to issue rules
6801 et seq.))
out the purposes of this subtitle with
respect to financial institutions and other
persons subject to their respective
jurisdiction under section 505 (and
notwithstanding subtitle B of the
Consumer Financial Protection Act of
2010), except that the Bureau of
Consumer Financial Protection shall not
have authority to prescribe regulations
with respect to the standards under
section 501.”
Section 1094 (amending the Home
“…may, by regulation, exempt from the
None None
Mortgage Disclosure Act of 1975 (12
requirements of this title any State-
U.S.C. 2801 et seq.))
chartered repository institution within any
State or subdivision thereof, if the agency
determines that, under the law of such
State or subdivision, that institution is
subject to requirements that are
substantially similar to those imposed
under this title, and that such law contains
adequate provisions for enforcement.”
Section 1097(1) (amending Section
“…shall have authority to prescribe rules
None None
626 of the Omnibus Appropriations
with respect to mortgage loans in
Act, 2009 (15 U.S.C. 1638 note)).
accordance with section 553 of title 5,
United States Code. Such rulemaking shall
relate to unfair or deceptive acts or
practices regarding mortgage loans, which
may include unfair or deceptive acts or
practices involving loan modification and
foreclosure rescue services.”
Section 1100(6)(B) (amending the
“…is authorized to promulgate regulations None None
S.A.F.E. Mortgage Licensing Act of
setting minimum net worth or surety bond
2008 (12 U.S.C. 5101 et seq.))
requirements for residential mortgage loan
originators and minimum requirements for

recovery funds paid into by loan
originators.”

CRS-35

Section
Text of the Provision
Other Agencies
Deadlines for Rules
Section 1472(a) (amending Chapter 2
“…may jointly issue rules, interpretive
Rule to be issued jointly with the Board of
Per Section 1400(c), final rule to be
of the Truth in Lending Act (15 U.S.C.
guidelines, and general statements of
Governors, the Comptrol er of the
published within 18 months after
1631 et seq.))
policy with respect to acts or practices
Currency, the Federal Deposit Insurance
designated transfer date, and to take effect
that violate appraisal independence in the
Corporation, the National Credit Union
within 12 months after issuance.
provision of mortgage lending services for
Administration Board, and the Federal
a consumer credit transaction secured by
Housing Finance Agency.
the principal dwelling of the consumer and
mortgage brokerage services for such a
transaction, within the meaning of
subsections (a), (b), (c), (d), (e), (f), (h),
and (i).”
Section 1472(a) (amending Chapter 2
“…may jointly issue regulations that
Rule to be issued jointly with the Board of
Per Section 1400(c), final rule to be
of the Truth in Lending Act (15 U.S.C.
address the issue of appraisal report
Governors, the Comptrol er of the
published within 18 months after
1631 et seq.))
portability, including regulations that
Currency, the Federal Deposit Insurance
designated transfer date, and to take effect
ensure the portability of the appraisal
Corporation, the National Credit Union
within 12 months after issuance.
report between lenders for a consumer
Administration Board, and the Federal
credit transaction secured by a 1-4 unit
Housing Finance Agency.
single family residence that is the principal
dwelling of the consumer, or mortgage
brokerage services for such a transaction.”
Source: CRS.

CRS-36

Regulations to be Issued by the Consumer Financial Protection Bureau

Author Contact Information

Curtis W. Copeland

Specialist in American National Government
cwcopeland@crs.loc.gov, 7-0632

Congressional Research Service
37