CFPB will not prioritize enforcement of nonbank registry rule

The CFPB announced Friday it will not prioritize enforcement or supervision actions with entities required to submit information under the Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders regulation.

The rule does not directly impact credit unions, but America’s Credit Unions’ legacy organizations submitted comments on the proposal in April 2023, generally supporting it and encouraging the CFPB to conduct additional supervision over underregulated nonbanks, including fintechs.

The policy applies to, but is not limited to, the upcoming April 14 and July 14 registration deadlines for entities subject to the rule.

According to the CFPB, it will instead “continue to focus its enforcement and supervision activities on pressing threats to consumers” and is “further considering issuing a notice of proposed rulemaking to rescind the regulation or narrow its scope.”