The CFPB's Supervisory and Enforcement Functions and How They Work Together


In an October 9 speech to the FDIC’s Advisory Committee on Economic Inclusion, Steve Antonakes, the Deputy Director of the CFPB and also the Associate Director of the CFPB’s Supervision, Enforcement and Fair Lending (SEFL) Unit, discussed the CFPB’s supervisory and enforcement tools.

Antonakes noted that the Bureau has “the opportunity to oversee consumer financial products and services across charters and business models,” and that for this reason, “charter or license type is becoming less relevant in determining how [the Bureau] will prioritize and schedule [its] examinations and investigations.” Instead, as Antonakes explained, the CFPB has “begun to implement a prioritization framework that allocates [its] examination, investigation, and fair lending resources across product types.” In a rare public assessment of Bureau Supervision priorities, Antonakes then outlined the “qualitative and quantitative factors” used to determine – in part, at least – supervision priorities. “These factors include: the size of a product market; a regulated entity’s market share in that product market; the potential for consumer harm related to a particular product market; and field and market intelligence that encompasses a range of issues including, but not limited to, the quality of a regulated entity’s management, the existence of other regulatory actions, default rates, and consumer complaints.”

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