Warren to lead Consumer Financial Protection Bureau power transfer beginning July 2011
The U.S. Department of the Treasury has announced that July 21, 2011 will be the "designated transfer date" on which certain authorities will be transferred to the Consumer Financial Protection Bureau (CFPB) pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act. Solidifying a "designated transfer date" locks in the timeline for implementing the Dodd-Frank Act's mortgage reforms contained in Title XIV. For Title XIV provisions where regulations are required to implement the provision, the Board or CFPB must issue its final rules by Jan. 21, 2013. The rules must take effect within one-year of issuance, meaning that compliance with all rules would be required at the latest by Jan. 21, 2014. If the agencies fail to issue implementing regulations, the statutory language will take effect on Jan. 21, 2013. On July 21, 2011, among other things, the CFPB will: ►Receive its full authority to prescribe rules or issue orders pursuant to any federal consumer financial law (as defined in the Dodd-Frank Act); ►Officially receive staff transfers from the other agencies; and ►Become responsible for the supervision of depository institutions with assets in excess of $10 billion. The Federal Register notice also states that, prior to July 21, 2011, the CFPB will begin conducting research on consumer financial products and services, develop its nationwide consumer complaint response center, and begin to plan implementation of its risk-based supervision of non-depository covered persons. In addition, the CFPB is planning a roundtable discussion to begin the process of merging Truth-in-Lending (TIL) and Real Estate Settlement Procedures Act (RESPA) disclosures. In addition to announcement of the designated transfer date, the President also appointed Professor Elizabeth Warren of Harvard Law School as Assistant to the President and Special Advisor to the Secretary of the Treasury, and Warren was widely regarded as a top candidate to be nominated as director of the BCFP. Until she took the new position was the Chair of the Congressional Oversight Panel that Congress formed to oversee Treasury's TARP efforts. The COP has issued numerous reports under Professor Warren's leadership. Warren will play a key role within the administration in standing up the CFPB without having to be confirmed by the Senate. Click here to view the official notice from the Federal Register.