The Consumer Financial Protection Bureau has plenty of room for improvement when it comes to the efficiency and effectiveness of its supervisory activities, says the Federal Reserve’s Office of the Inspector General in a new evaluation report.
When conducting its initial evaluation, the OIG reviewed key program elements including the CFPB’s policies and procedures, examination guidance, and controls to promote consistent and timely reporting. Also assessed were the CFPB’s approach for staffing examinations and its training program for examination staff.
“While we recognize the considerable efforts associated with the initial development and implementation of the program, we believe that the CFPB can improve the efficiency and effectiveness of its supervisory activities,” the OIG said in its findings.
The CFPB needs to improve its reporting timeliness and reduce the number of examination reports that have not been issued. The bureau also needs to adhere to its “unequivocal standards” concerning the use of standard compliance rating definitions in its examination reports.
Another area for the CFPB to address: updating its policies and procedures to reflect current practices.
The OIG conducted its evaluation using data as of July 31, 2013, with fieldwork completed in October. Since then, the report notes, senior CFPB officials have indicated that management has taken steps to address some of the OIG’s findings, including streamlining the report review process and reducing the number of non-issued reports.
Overall, the report includes 12 recommendations meant to help the CFPB strengthen its supervision program. The OIG plans to follow up on the bureau’s actions to ensure recommendations are fully addressed.
Access the OIG’s evaluation report.
Written by Alyssa Gerace