The CFPB issued a procedural rule Friday updating the process by which financial institutions can appeal supervisory findings. The updated rule broadens CFPB officials eligible to evaluate appeals, options for resolving an appeal, and matters subject to appeal for institutions seeking to appeal a compliance rating or adverse materials finding.
The changes in Friday’s updated appeals process include:
- The Supervision Director will select an appeals committee of three CFPB managers with relevant expertise who did not work on the matter being appealed, and who will advise the Supervision Director in conjunction with attorneys assigned by the CFPB’s General Counsel;
- The appeals committee will now be able to remand a matter to Supervision staff for consideration of a modified finding, in addition to the existing options of upholding or rescinding the finding; and
- Institutions may now file an appeal of any compliance rating or finding, not only an adverse rating.
The updated process will become effective once published in the Federal Register.
