The Office of the Inspector General for the Federal Reserve reported that the Consumer Financial Protection Bureau took too long to complete bank and non-bank examination reports and failed to meet its own timeline when offering feedback to financial institutions on their compliance with the Dodd-Frank Act, Bloomberg reported April 1.
“While we recognize the considerable efforts associated with the initial development and implementation of the program, we believe that the CFPB can improve the efficiency and effectiveness of its supervisory activities,” the IG’s report noted, Bloomberg reported.
The CFPB is responsible for examining banks with assets of more than $10 billion, such as a large financial institution like JPMorgan Chase, and smaller regional firms like Regions Financial Corp. The bureau also examines non-bank firms like payday lenders, student loan servicers and mortgage originators.
Banks have complained about the CFPB’s failure to meet its own 110-day timeline for providing them with feedback on their compliance with new rules from Dodd-Frank.
Bloomberg reported that 59 percent of the time field examiners failed to submit their initial reports to superiors within 30 days, as required by the CFPB’s own guidelines. Further, 54 out of 60 reports did not receive approval from its Washington, D.C., headquarters within the required 30 days.
The IG’s report covered examination data from July 2011 to July 2013.
CFPB Deputy Director Steven Antonakes said the bureau was working to improve efficiencies, but noted that the agency frequently has to “address the numerous novel issues that often arise in CFPB examinations without sacrificing consistency across regions and types of institutions,” Bloomberg reported.