Cost and regulatory burdens were cited as reasons for rescinding a 2024 rule that would have required nonbanks to report if they had been penalized for violating consumer financial laws.

A CFPB official at a recent industry conference said the bureau is set to resume examinations within weeks. In April, the bureau said it would shift its supervision activities to depository institutions.

The proposed rule would create narrower standard the bureau must abide by in order to designate nonbanks for agency supervision.

The ruling by the appeals court allows the Trump administration to proceed with massive layoffs at the bureau. One of the three judges to hear the case dissented, arguing that the courts are shifting power from Congress to the executive branch.

The bureau is considering raising the bar for triggering oversight of nonbanks in consumer reporting, consumer debt collection, automobile lending and international money transfers.

CSBS is working on prudential standards for nonbank servicers, a framework for safeguarding sensitive information at nonbanks, and standards to modernize supervision and regulation of money transmitters.

Some of the bureau’s new enforcement and supervision priorities are lacking alignment, according to former CFPB executives.

According to industry insiders, there is room for state and federal regulators while also supporting the independence of federal agencies.

The bureau intends to focus on “actual fraud,” where there are identifiable victims with measurable damages as opposed to matters based on the bureau’s perception that consumers made “wrong” choices.

The transaction threshold determining which nonbanks come under the bureau’s supervision has been drastically increased, to 50 million annual transactions from 5 million proposed.