The Consumer Financial Protection Bureau has issued a final rule to assert its rights to protect the confidentiality of privileged information it collects from the banks and certain nonbanks.
“We are committed to safeguarding the confidential information of the institutions we supervise to ensure the bureau is best equipped to do its job and protect consumers,” said CFPB director Richard Cordray. “This new rule supports the free flow of information that is essential to an effective supervision program.”
In March, the House of Representatives passed a bill that would protect confidential information banks and thrifts submit to the new bureau, but not information submitted by independent mortgage banks that operate in certain states. The Senate has not acted on the measure.
The final rule applies to all CFPB-supervised entities, including “certain nondepository institutions” supervised by the bureau.
Some commenters on the proposed rule urged the bureau to wait until Congress addresses an issue involving privileged information.
“Although the bureau has expressed support for legislation codifying the bureau’s view that the submission of privileged information does not result in a waiver, the bureau does not believe such legislation is necessary,” the rule says.
The final rule goes into effect in 30 days.
