Magazine article American Banker

CFPB Examiners Moved through Training Program Too Fast, IG Says

Magazine article American Banker

CFPB Examiners Moved through Training Program Too Fast, IG Says

Article excerpt

Byline: Kate Berry

The Consumer Financial Protection Bureau may have encouraged some examiners to move through its examiner commissioning program before they were ready, limiting their likelihood of success, the agency's Office of Inspector General said in a report released Monday.

The CFPB has taken steps to enhance the examiner commissioning program, which the bureau has described as an important component of its supervisory program, since it was implemented in 2014, the agency's watchdog said.

But the OIG report found that in the process of the bureau's division of supervision, enforcement and fair lending needing more commissioned examiners, some had advanced through the program before they were fully prepared.

"We found that these resource constraints contributed to regional management allowing and, in some instances, encouraging examiners to proceed through the examiner commissioning program before they were ready," the OIG report stated. "We attribute examiners proceeding before being fully prepared to several factors, including management's need for commissioned examiners to lead examinations and carry out the CFPB's mission, examiners' advancement incentives, and ineffective controls."

Among its recommendations, the OIG report called on the CFPB to develop a formal written method to evaluate and update the examiner commissioner program.

"The bureau agrees with each of the recommendations, and expects to implement a third of them within the next 30 days," Christopher D'Angelo, associate director of the division of supervision, enforcement and fair lending, wrote in a Sept. …

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