Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders; Rescission
CFPB Moves to Scrap Public Registry Requiring Nonbank Lenders to Report Legal Orders
Key Points
- This rule cancels a 2024 plan that would have made many nonbank finance companies report certain legal orders to a federal registry.
- Nonbank companies that got public orders from courts or regulators no longer have to file paperwork copies and updates with the Consumer Financial Protection Bureau.
- Some supervised nonbank firms also no longer have to file yearly signed statements saying whether they followed those orders.
- The agency says the registry would cost businesses time and money (and cost the government about $2.5 million a year) without clear proof it helps consumers.
- For consumers, it may be harder to find a single “one-stop” list of companies with past enforcement orders, but the orders are still public in other places.
Impact Analysis
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CFPB kills two Biden-era nonbank registries, citing costs
The CFPB is rescinding a 2024 rule that required nonbanks to report violations of court orders to a federal registry. Acting Director Russ Vought cited concerns that the costs of the registry, which could be passed to consumers, were not justified by 'speculative and unquantified benefits.'
CFPB cancels pair of nonbank registry rules
Under Acting Director Russell Vought, the CFPB finalized a rule rescinding the Nonbank Registry Rule. The rescission was praised by mortgage industry groups who argued the requirements were duplicative of existing state systems like the Nationwide Multistate Licensing System.
CFPB looks to rescind nonbank registry, ignore compliance
In an earlier move signaling the rescission, the CFPB announced it would not prioritize enforcement of the nonbank registry rule. The agency indicated that the registry of 'repeat corporate offenders' was under review as part of a broader effort to roll back Biden-era regulations.
Source Information
Document Type
Federal Rule
Official Title
Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders; Rescission
Data Sources
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