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CFPB Gives Update on Disaster Preparedness, Regulation

On Thursday, Consumer Financial Protection Bureau (CFPB) Director Kathleen L. Kraninger appeared before the Senate Committee on Banking, Housing, and Urban Affairs to give CFPB’s Semi-Annual Report to Congress. In her testimony, Kraninger covered significant problems faced by consumers in shopping for or obtaining consumer financial products or services, justification of the budget request of the previous year, as well as rules the CFPB has adopted.

Among the problems addressed by Kraninger were natural disasters, and the steps the CFPB is taking to mitigate disaster damage to homeowners and other consumers.

“Natural disasters can result in substantial property destruction and personal injury, and tragically, loss of life,” Kraninger said. “They can also result in negative shocks to household finances, including lost income and major unexpected expenses. Many financial institutions offer financial relief or assistance that often includes payment relief for customers affected by natural disasters. The qCCT report about Natural Disasters and Credit Reporting documents current practices for natural disaster reporting as reflected by comment codes entered in credit records.”

“The Bureau recognizes the serious impact major disasters or emergencies have on consumers and the operations of many supervised entities,” she added. “Existing laws and regulations provide supervised entities regulatory flexibility to take certain actions that can benefit consumers in communities under stress and hasten recovery. The Bureau will also consider the impact of major disasters or emergencies on supervised entities themselves when conducting supervisory activities. In September 2018, the Bureau issued its “Statement on Supervisory Practices Regarding Financial Institutions and Consumers Affected by a Major Disaster or Emergency.”

In his opening statement, Chairman Mike Crapo mentioned policies that the CFPB have adopted.

“On September 10, the CFPB issued three new policies to promote innovation and reduce regulatory uncertainty,”Crapo said. “Those policies include the Trial Disclosure Program Policy; the Compliance Assistance Sandbox Policy; and the No-Action Letter Policy.”

About Author: Seth Welborn

Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.
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