Alert March 19, 2013

FRB-OIG Workplan Includes Evaluation of CFPB’s Use of Enforcement Attorneys During Examination Process

The Office of the Inspector General for the FRB and the CFPB recently updated its Work Plan (see October 16, 2012 Alert), which generally outlines the OIG’s initiatives and priorities to assist the FRB and the CFPB in fulfilling their responsibilities. Of particular import, the OIG noted that it is currently evaluating the CFPB’s practice of using enforcement attorneys in its examinations. Such practice has already been called into question previously by the CFPB Ombudsman. In its first annual report, the CFPB Ombudsman recommended that the CFPB review this practice, which has been a cause for concern among consumer financial service providers (see December 11, 2012 Alert). The OIG plans to assess the risks associated with the CFPB’s practice and the effectiveness of any safeguards the CFPB has put in place to mitigate those risks. The OIG anticipates completing its evaluation in the second quarter of 2013.