This story appeared in Bank Digest.
The Consumer Financial Protection Bureau has issued a bulletin announcing changes to how it articulates supervisory expectations to institutions in connection with supervisory events. According to the bulletin, the Bureau will continue to communicate findings to institutions in writing by way of examination reports and supervisory letters.
Effective immediately, the Bureau said, those reports and letters will include two categories of findings that convey supervisory expectations: Matters Requiring Attention and Supervisory Recommendations. The uses of both categories are explained in the bulletin.
The CFPB said that neither MRAs nor SRs are legally enforceable but that the Bureau will consider an institution's response in addressing identified violations of federal consumer financial law, weaknesses in compliance management systems, or other noted concerns when assessing the institution's compliance rating or otherwise considering the risks the institution poses to consumers and markets.