(Updates with bank supervision beginning in fourth paragraph.)
Nov. 1 (Bloomberg) -- The U.S. Consumer Financial Protection Bureau will begin a “targeted review” of regulations it inherited from other agencies to eliminate unnecessary rules, according to prepared congressional testimony from Raj Date, the de facto head of the agency.
“The bureau has a unique opportunity to streamline and simplify rules to ensure that they are truly making consumer financial markets work better,” Date plans to tell a House Financial Services subcommittee tomorrow. “Changes in technology, market practices and the legal landscape may have caused some of these rules to be obsolete, unnecessary, redundant or counterproductive.”
Date, the special adviser to the Treasury secretary who is leading the bureau temporarily, said the review will begin later this month. The CFPB, created by last year’s Dodd-Frank Act, officially began work on July 21 and assumed oversight of consumer finance regulations from other federal agencies.
Date also said the consumer bureau has started “on-site examinations of the largest banks.” The new agency is also charged with supervising large banks on consumer issues.
The bureau released its examination manual on Oct. 13 and said it would focus on supervision of mortgage servicing.
“Over the coming months, we will release more guides that explain specific examination procedures for particular products and lines of business,” Date said in the testimony.
--With assistance from Phil Mattingly in Washington. Editors: Maura Reynolds, Dan Reichl.
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