July 06, 2020

CFPB announces tech sprints on e-disclosures, HMDA

cfpbThe CFPB last week announced its first-ever tech sprints in efforts to reduce financial institutions' regulatory burden and improve consumer understanding of financial services. The agency proposed techs sprints through a request for information last year as a means to identify new technologies and approaches that can be used to provide more cost-effective oversight of supervised entities.

A tech sprint involves small teams of regulators, technologists, financial institutions, and subject matter experts working together to develop solutions to clearly identified problems in a collaborative environment.

“The Bureau’s Tech Sprints program offers an opportunity for financial companies, technology experts, programmers, consumer groups, and regulators to collaborate and find innovative ways to address common challenges that will result in better regulatory compliance and help consumers to make better, more informed financial decisions,” said CFPB Director Kathy Kraninger. “I am excited that the CFPB is leading in government innovation by launching these Tech Sprints.” 

The first tech sprints will be held at the bureau's headquarters and examine:

  • Electronic disclosures (October 5-9): Participants will develop and test innovative approaches to electronic delivery of adverse action notices required under the Equal Credit Opportunity Act and the Fair Credit Reporting Act.
  • Home Mortgage Disclosure Act (HMDA) (March 22-26, 2021): Participants will innovate in HMDA data submissions, processing, and publication through new platform tools and technologies.

During NAFCU's Congressional Caucus last year, Kraninger detailed ways the bureau is using its tools to review the examination process for credit unions and balance consumer protections with effective regulations.

Additionally, NAFCU has a whitepaper that charts a path forward for regulatory coordination in order to achieve an even playing field between traditional financial institutions and fintech companies. The whitepaper addresses ways the CFPB has sought to influence certain types of innovations and how it can improve its approach.