The CFPB and Conference of State Bank Supervisors, which acted on behalf of state financial regulators, announced a framework to establish a process for coordination on enforcement and supervision issues where the CFPB and state regulators share jurisdiction.
“Our strong partnership with state regulators is critical to protecting consumers,” CFPB Director Richard Cordray said. “By working together, we are streamlining our processes, making the most of our joint resources, and ensuring evenhanded oversight of federal consumer financial laws.”
The agreement is based on a memorandum of understanding signed by the CFPB and CSBS in 2011 and a statement of intent issued by the CFPB last year.
The MOU mandates that state regulators and the CFPB consult on practices, procedures and standards used in consumer financial product examinations. The framework applies to non-depository institutions and depository institutions with $10 billion or more in assets.
The Dodd-Frank Act requires the CFPB to coordinate with state bank regulators on matters of supervision and enforcement. The framework sets up processes for coordinate exam schedules, developing comprehensive supervisory plans, coordinating information requests, streamlining information sharing and providing advance notice of corrective action.