Section 1025 of Dodd-Frank requires regulators, including the Consumer Financial Protection Bureau, and prudential regulators – Federal Reserve Board of Governors, Federal Deposit Insurance Corp., National Credit Union Administration and Office of the Comptroller of the Currency – to jointly supervise depository institutions with more than $10 billion in assets.
The provision requires that the regulators schedule coordinated examinations, conduct simultaneous examinations of those applicable depository institutions and share examination draft reports for comment.
Receiving agencies of draft reports will have 30 days minimum to comment on the findings established in the reports before the issuing agency publishes a final report on the examination.
In the memorandum of understanding issued on Monday, the agencies laid out a plan to coordinate regulatory efforts, avoid regulatory overlap, reduce the risk of conflicting regulatory statutes and minimize the regulatory burden.
The coordination efforts are intended to enhance efficiency and uniformity in supervisory activities and reduce the regulatory burden. The agencies will be responsible for coordination examinations and sharing information related to consumer financial law compliance, consumer compliance risk management programs, underwriting activities and other matters that the agencies may agree upon.