BRIEFLY: Bureau rescinds ‘abusiveness’ policy; Liang tapped for Treasury post; Chopra nomination advances despite tie vote; Q&A proposed on private flood insurance

(March 12, 2021) A policy unveiled early last year by CFPB that limited the extent of the agency’s response to certain abusive acts or practices affecting consumers was rescinded Thursday, the bureau announced. CFPB said it intends now to “exercise its supervisory and enforcement authority consistent with the full scope of its statutory authority under the Dodd-Frank Act as established by Congress.” The release said the bureau intends these changes “to better protect consumers and the marketplace from abusive acts or practices, and to enforce the law as Congress wrote it.” Then-Director Kathleen Kraninger originally set the policy in place last year … Nellie Liang – a nominee for the Federal Reserve Board in 2018 (but whose nomination was never considered by the Senate Banking Committee, let alone the full Senate) – will be nominated as Treasury undersecretary for domestic finance, the White House said Thursday. The position is responsible for a wide variety of policy, including that for credit unions, banks and other financial institutions. Liang, an economist, is a former top Fed staff member … Meanwhile, the nomination of Rohit Chopra to be the next director of the CFPB received a tie vote this week in the Senate Banking Committee on a recommendation by the committee for confirmation. The tied recommendation will proceed, however, to consideration by the full Senate under rules adopted by the Senate early this year … NCUA and the federal banking agencies Thursday released a proposed list of 24 questions and answers addressing the private flood insurance provisions of the 2012 Biggert-Watters Flood Insurance Reform Act. Comments are due in 60 days. The proposal includes some references to a set of Q&As proposed last year and published July 6 in the Federal Register. Those Q&As only included two on private flood insurance, the agencies noted, adding that the rules for private insurance had just been finalized in 2019. The regulators said they plan to publish a final document in the Federal Register that will consolidate Thursday’s proposed private insurance Q&As with the 2020 proposed Q&As.

Consumer Financial Protection Bureau Rescinds Abusiveness Policy Statement to Better Protect Consumers

Agencies Release Proposed New Interagency Questions and Answers Regarding Private Flood Insurance