Industry Mixed on Regulators' Guidance Statement
Financial Services attorney Bob Jaworski was quoted by RESPA News when asked about the Consumer Financial Protection Bureau's (CFPB) news that regulatory guidance does not have the force of law. Mr. Jaworski called the announcement a welcome development for the financial services industry, but is concerned that the interagency statement could result in less supervisory guidance being issued. Examiners from the CFPB will not criticize a supervised financial institution for a 'violation' of supervisory guidance, but will issue citations for violations of the law, regulation, or non-compliance with enforcement orders or other enforceable conditions.
"Supervisory guidance is supposed to be just that – guidance," Mr. Jaworski told RESPA News. "Because it is not a rule or a statute, it does not have the force of law and should not be applied as if it does."