CFPB Streamlines Nonbank Supervisory Designation Procedures

• On April 16, 2024, the Consumer Financial Protection Bureau (CFPB) issued a revised procedural rule updating how the agency designates nonbanks for supervision.
• The revised rule demonstrates again the agency's commitment to asserting its supervisory authority over nonbanks that, in its view, create risks for consumers accessing financial products or services.

On April 16, 2024, the CFPB issued a revised rule aimed at streamlining its procedures for designating nonbank covered entities for supervision. The CFPB said the revised procedures "reflect changes to the CFPB's organizational structure," but also noted that the revised procedures would lead to a "reduction in time and general streamlining of the decisional process" by which nonbanks are designated for supervision.