This week, the Consumer Financial Protection Bureau (CFPB or Bureau) released its semiannual regulatory agenda, outlining its planned rulemaking initiatives. This agenda includes a mix of rules in the pre-rulemaking, proposed rule, and final rule stages, covering a wide range of topics from medical debt reporting to financial data transparency. The CFPB releases regulatory agendas twice a year in voluntary conjunction with a broader initiative led by the Office of Budget and Management to publish a Unified Agenda of Regulatory and Deregulatory actions across the federal government.

The upcoming change in administration may significantly impact the Bureau’s ability to finalize these rules, however, including through Congress’ potential use of the Congressional Review Act (CRA). The CRA provides Congress with the ability to reject recent federal regulations within 60 legislative days by a simple majority vote in both chambers. If CRA legislation is signed by the President, then the rule would be rescinded, and the CFPB would be prohibited from issuing a substantially similar rule without explicit legislative authorization.

Final Rule Stage

The CFPB’s agenda contains several rulemakings in their final stages, with multiple final rules anticipated to be released during December and some of which were already finalized during Q4 2024. Notably, final rules include:

  • Rule on Overdraft Fees for Large Financial Institutions: As discussed here, on December 12, the Bureau announced the finalization of its rule addressing overdraft fees. The rule targets financial institutions with more than $10 billion in assets, imposing new restrictions and requirements on how these institutions manage and charge for overdraft services.
  • Medical Debt Reporting under the Fair Credit Reporting Act (FCRA): As discussed here, on June 11, the CFPB released a proposed rule amending Regulation V, which implements the FCRA, concerning medical debt. The proposed rule would remove a regulatory exception that currently allows creditors to obtain and use information on medical debts for credit eligibility determinations. Additionally, the proposed rule would generally prohibit consumer reporting agencies from furnishing consumer reports containing medical debt information to creditors. The final rule is expected this month.
  • Nonsufficient Fund Fees for Instantaneously Declined Transactions: As discussed here, this rule seeks to prohibit financial institutions from charging nonsufficient fund fees on transactions that are declined instantaneously or nearly instantaneously. The final rule is expected this month.
  • Financial Data Transparency Act: The Department of the Treasury, Federal Reserve Board, OCC, FDIC, CFPB, SEC, FHFA, NCUA, and the CFTC jointly proposed a rule establishing data standards for the collections of information reported to each agency by financial entities under their jurisdiction, and the data collected from the agencies on behalf of the Financial Stability Oversight Council. The final rule is expected this month.
  • Residential Property Assessed Clean Energy (PACE) Financing: This week the CFPB issued its final rule mandating that lenders assess a borrower’s ability to repay a PACE loan and providing a framework for how these loans will be treated under the Truth in Lending Act.
  • Remittance Transfers Under the Electronic Fund Transfer Act: As discussed here, the CFPB put forth a proposed rule aimed at amending the disclosure requirements for international money transfers, commonly known as remittances. The proposed amendment is aimed at clarifying for consumers the types of inquiries that may be better handled by their remittance company before contacting the CFPB or the relevant state regulator. The final rule is slated for March 2025.
  • Defining Larger Participants in Digital Payment Applications: As discussed here, on November 21, the CFPB finalized a rule that will bring significant changes to the oversight of nonbank digital payment companies. The final rule targets nonbank companies that facilitate over 50 million consumer payment transactions annually. These companies, which include some of the largest technology firms, will now be subject to the CFPB’s supervisory authority, similar to large banks and credit unions.
  • Public Registry of Terms and Conditions in Form Contracts: As discussed here, earlier this year, the Bureau published a proposed rule with request for public comments that would require certain nonbank covered entities, with limited exceptions, to submit information on terms and conditions in their form contracts that “seek to waive or limit individuals’ rights and other legal protections.” The covered entities would be required to submit this information on a yearly basis and the terms and conditions collected would then be posted in a registry that would be available to the public and consumer financial protection law enforcers. The final rule is slated for June 2025.
  • Streamlined Mortgage Servicing Rule: As discussed here, in July, the Bureau proposed new and, in some cases, streamlined rules governing what mortgage servicers must do after a borrower becomes delinquent. The proposed rules incorporate some pandemic-era practices, such as allowing servicers to offer assistance without a comprehensive review of the borrower’s financial situation. According to the CFPB, the new rules would require mortgage servicers to prioritize loss mitigation over foreclosing, reduce paperwork requirements, improve communication with borrowers, and ensure critical information is provided in the borrowers’ preferred language. The final rule is expected in July 2025.

Proposed Rule Stage

The CFPB’s proposed rule stage includes two significant initiatives:

  • Regulation AA: The CFPB plans to issue regulations regarding the inclusion or enforcement of certain provisions in contracts for consumer financial products or services, reviving a set of rules originally established by the Federal Reserve.
  • Protecting Consumer Information in the Consumer Reporting Marketplace (Regulation V): This proposal aims to regulate the activities of data brokers under the FCRA and address issues arising from the rapid evolution of the consumer reporting marketplace.

Prerule Stage

In the prerule stage, the CFPB is considering rulemaking or guidance on the following topics:

  • Mortgage Closing Costs: The Bureau is exploring potential interventions to address mortgage closing costs imposed by lenders on homebuyers and refinancing homeowners.
  • Customer Service Rule: This rule would prohibit certain misleading practices involving automated customer service systems, making it easier for customers to reach a live representative and improving customer service quality.

House Financial Services Committee Leaders’ Calls to Halt Rulemakings

Amid the release of the CFPB’s regulatory agenda, current House Financial Services Committee Chair Patrick McHenry (R-NC) and incoming Chair French Hill (R-AR) have sent letters to the federal financial institution regulatory agencies, including the CFPB, calling for a halt to all “partisan” rulemakings. The letters, sent on December 16, 2024, urge agencies to refrain from finalizing rulemakings prior to the Trump administration entering office. Representatives McHenry and Hill also instructed the agencies to preserve all documents and communications that might be subject to the committee’s oversight activities.

The letter to CFPB Director Rohit Chopra specifically requests the preservation of all existing and future documents, communications, and other information that may be responsive to a congressional inquiry, request, investigation, or subpoena. The letter also cautions against finalizing partisan rulemakings, highlighting the potential use of the CRA to disapprove end-of-administration rulemakings.

Our Take

The CFPB’s semiannual regulatory agenda signals a busy and potentially transformative period for the financial services industry. However, the recent calls from House Financial Services Committee leaders to halt rulemakings and Congress’ potential use of CRA could significantly impact the Bureau’s ability to finalize its planned rules. The political landscape and upcoming presidential administration change add layers of uncertainty to the CFPB’s regulatory efforts.