Regulatory Alert: CFPB Proposes Immediate Rescission of Nonbank Registry Rule
Summary: On June 13, 2025, the CFPB proposed rescinding its July 2024 Nonbank Covered Persons Registry Rule—less than a year after its rollout. The proposal would take effect immediately upon Federal Register publication, eliminating the requirement for nonbanks to report prior enforcement or court orders to the CFPB.
Details:
- The CFPB argues the registry imposes an unnecessary burden, as other federal and state agencies already track enforcement orders. Link
- With comments due by June 13 (today), this marks a decisive swing away from stringent nonbank oversight. Link
- If adopted, it would roll back duties for all covered nonbank entities—including mortgage lenders, payday lenders, and private education loan providers—just 24 hours before the next compliance deadline of June 14, Link.
What’s New:
Immediate rollback: Registry requirements could vanish overnight—no 30‑day grace period.
- Burden shift: Compliance teams may no longer need to gather and report historical enforcement data.
- Regulatory pivot: Reflects CFPB’s ongoing deregulatory push under its current leadership.
What This Means for Financial Institutions:
- Nonbanks that anticipated registration requirements must reassess their compliance calendar, there may be no next-day filing.
- Legal and compliance teams should monitor the Federal Register closely and consider submitting comments before today’s deadline.
- Market implications: The rollback could ease regulatory friction for nonbank lenders but may face legal or political pushback.
For further information or inquiries about this alert, please visit High-risk Education.
