Disclaimer
      This presentation is being made by Consumer 
      Financial Protection Bureau representatives on behalf 
      of the Bureau.  It does not constitute legal 
      interpretation, guidance, or advice of the Consumer 
      Financial Protection Bureau.  
      This document was used in support of a live 
      discussion.  As such, it does not necessarily express 
      the entirety of that discussion nor the relative 
      emphasis of topics therein.
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      Dodd-Frank Act
      ▪ In substantive rulemakings, Section 1022(b) of the Dodd-
         Frank Act requires the CFPB to consider:
          ◻ The potential benefits and costs to consumers and 
             covered persons;
          ◻ The potential reduction of access by consumers to 
             consumer financial products or services;
          ◻ The impact on consumers in rural areas;
          ◻ The impact on insured depository institutions or 
             credit unions with total assets of $10 billion or less.
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      Dodd-Frank Act (continued)
      ▪ Section 1022(d) of the Dodd-Frank Act requires the CFPB 
         to conduct an assessment of each significant rule or 
         order adopted by the Bureau under Federal consumer 
         financial law. 
       
          ◻ The Bureau must publish a report of the assessment not later than 
             five years after the effective date of such rule or order. 
          ◻ The assessment must address, among other relevant factors, the 
             rule or order's effectiveness in meeting the purposes and objectives 
             of title X of the Dodd-Frank Act and the specific goals stated by the 
             Bureau.
          ◻ The assessment must reflect available evidence and any data that 
             the Bureau reasonably may collect.  Before publishing a report of 
             its assessment, the Bureau must invite public comment on 
             recommendations for modifying, expanding, or eliminating the rule 
             or order.                                                   4
      Bureau Practice
      ▪ The Bureau established practices in early 2012 to meet 
        the Section 1022(b) cost-benefit requirement in Dodd-
        Frank. 
         These practices include:
      ▪ Staffing teams in substantive rulemakings with 
        economists and market experts as well as attorneys and 
        integrating the consideration of benefits, costs and 
        impacts into the rulemaking process;
      ▪ Making the Office of Research accountable for the 
        analyses required by Section 1022(b);
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      Bureau Practice (continued)
      ▪ Publishing with proposed and final substantive rules a 
         Section 1022(b) analysis that reviews significant 
         regulatory requirements for the expected benefits, costs 
         and impacts specified in that section and which meets 
         general standards for cost-benefit analysis, such as:
          ◻ Using an explicit baseline consistently throughout the 
             analysis, 
          ◻ Considering the effects of significant alternatives to the 
             rule, 
          ◻ Quantifying and monetizing the costs and benefits where 
             appropriate and reasonably feasible to do so (possibly using 
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             estimates, ranges or outer boundaries), and explaining why 
             potentially significant benefits or costs cannot be quantified 
             or monetized.