The Consumer Financial Protection Bureau (“CFPB”) has released the first version of its Supervision and Examination Manual. The Manual is organized into three parts and is intended to be a guide for examiners regarding how financial service providers should be examined for compliance with consumer financial laws. The CFPB has adopted numerous examination procedures developed by the FFIEC in the Manual, as well as the FFIEC’s Uniform Consumer Compliance Rating System.
The first section of the Manual gives an overview of the supervision and examination process. In this section, the CFPB describes general principles underlying the examination process; examination planning, scheduling and follow-up; and investigatory and enforcement matters. In the second section of the Manual, the CFPB provides specific examination procedures and describes its expectations for an institution’s compliance management and mortgage servicing systems. Many of these examination procedures will cover familiar ground, particularly compliance with federal consumer protection laws such as ECOA, TILA, RESPA, FCRA, and EFTA. The procedures also include guidance on examinations for unfair, deceptive, or abusive acts and practices prohibited under the Dodd-Frank Act. The third section of the Manual provides a collection of templates to be used in connection with examinations, including templates for institution profiles, risk assessments, supervision plans, and examination reports.
The CFPB intends to update the Manual periodically as its compliance requirements change. The Manual may be found on the CFPB’s website in the supervision section.