The CFPB Can Improve Its Process for Onboarding Depository Institutions That Transition to Its Oversight

Date Issued

Monday, December 2, 2024

Submitting OIG

Federal Reserve Board & CFPB OIG

Agencies Reviewed/Investigated

Consumer Financial Protection Bureau

Report Number

2024-SR-C-021

Report Type

Inspection / Evaluation

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 4 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	No	$0	$0
Establish Supervision’s objectives for the onboarding process for transitioning depository institutions.
2	No	$0	$0
Establish clear roles and responsibilities at the headquarters level for overseeing Supervision’s onboarding process.
3	Yes	$0	$0
Develop and implement an officewide policy that describes management’s expectations for onboarding depository institutions that transition to the CFPB’s supervisory oversight. The policy should articulate a. key onboarding steps that OSE should take before and after a depository institution transitions. b. expected time frames for completing the key steps. c. guidance on coordinating with the prudential regulator of the onboarding institution, including discussion topics; documentation needs; and the process for managing preexisting supervisory issues, such as MRAs and enforcement actions.
4	No	$0	$0
Develop methods to monitor OSE’s execution of the onboarding process, including a. a tracking mechanism to determine whether the key onboarding steps have been completed. b. a process for obtaining feedback from the depository institutions that transitioned regarding the effectiveness of the onboarding process. c. a forum for the regional offices to share their experiences regarding the onboarding process to drive continuous improvement.