CFPB Nonbank Registration Rule – Begins Oct 16, 2024
June 3, 2024, the CFPB finalized its federal rules for the creation of a new nonbank registry. This nonbank registry collects information about certain publicly available agency and court orders. Essentially enforcement allegations, actions, infractions, including consent orders.
The final rule is effective on September 16, 2024. It provides covered nonbank entities with certain timeframes to comply with the requirements, including submission of their registrations.
Registration will begin for covered nonbanks as early as October 16, 2024.
The nonbank covered persons over which the Bureau has supervisory authority are listed in section 1024(a)(1) of the Consumer Financial Protection Act (CFPA). They include covered persons that:
offer or provide 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; are larger participants of a market for consumer financial products or services, as defined by Bureau rule; the Bureau has reasonable cause to determine, by order, that the covered person is engaging, or has engaged, in conduct that poses risks to consumers with regard to the offering or provision of consumer financial products or services; offer or provide private education loans; or offer or provide payday loans. 12 U.S.C. 5514(a)(1).
“Covered person” means - (A) any person that engages in offering or providing a consumer financial product or service; and (B) any affiliate of a person described in subparagraph (A) if such affiliate acts as a service provider to such person.
There is also a “Coverage Chart” that summarizes how an entity may determine if it is required to register an order under the Nonbank Registration Orders Rule.
Nonbank companies are required to register with the CFPB when they have become subject to certain final public orders imposing obligations on them based on alleged violations of specified consumer-protection laws. Nonbank companies subject to the CFPB's supervisory authority also generally must provide an annual attestation from a senior executive(s) regarding the company's compliance with the order(s).
The CFPB will open the portal for registration on Wednesday, October 16, 2024.
The final rule applies to certain final, written public orders issued by agencies or courts. These orders relate to investigations, matters, or proceedings. An order is covered by the final rule if it:
- Is a final, public order issued by an agency or court;
- Identifies a covered nonbank by name as a party subject to the order;
- Was issued at least in part in any action or proceeding brought by any Federal agency, State agency, or local agency;
- Contains public provisions that impose obligations on the covered nonbank to take certain actions or to refrain from taking certain actions;
- Imposes obligations on the covered nonbank based on an alleged violation of a covered law, which includes Federal consumer financial laws, other laws enforced by the CFPB, and certain unfair, deceptive, or abusive acts or practices laws at both Federal and State levels identified in the final rule; and
- Has an effective date on or after January 1, 2017. An order is effective on the date specified in the order. If an order does not have an effective date identified, the date of issuance is the effective date. If the issuing agency or a court stays or otherwise suspends an order’s effectiveness, the order’s effective date for purposes of the final rule is delayed until the stay or suspension is lifted
During each implementation submission period, the applicable covered nonbanks must register all covered orders that:
- Have an effective date from January 1, 2017, through the start of the covered nonbank’s submission period, and
- For covered orders issued prior to September 16, 2024, the covered order remains effective as of September 16, 2024.
The CFPB has a dedicated webpage for the nonbank registry portal and public database.
The page also has additional Resource links:
Nonbank registration: orders final rule executive summary
Nonbank registration: orders final rule coverage chart
Instructions for viewing state regulatory actions in NMLS