This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

13263 

Vol. 89, No. 36 

Thursday, February 22, 2024 

1https://files.consumerfinance.gov/f/201210_

cfpb_bulletin_supervisory-appeals-process.pdf. 

2https://files.consumerfinance.gov/f/201510_

cfpb_appeals-of-supervisory-matters.pdf. 

3This supervisory appeals process is not 

intended to nor should it be construed to: (1) 

restrict or limit in any way the CFPB’s discretion 

in exercising its authorities; (2) limit the CFPB 

Director’s authority to provide direction to CFPB 

staff at any time; (3) constitute an interpretation of 

law; or (4) create or confer upon any person, 

including one who is the subject of CFPB 

supervisory, investigation or enforcement activity, 

any substantive or procedural rights or defenses 

that are enforceable in any manner. 

4See the CFPB Supervision and Examination 

Manual’s chapter on the examination process. 

http://www.consumerfinance.gov/guidance/ 

supervision/manual/. 

5Supervision may issue supervisory letters for its 

reviews of consumer compliance matters that do 

not result in the issuance of the compliance rating. 

Supervised entities may appeal adverse findings 

described in a supervisory letter in the same 

manner as such findings in an examination report. 

Adverse findings are those that result in a Matter 

Requiring Attention. 

CONSUMER FINANCIAL PROTECTION 

BUREAU 

12 CFR Chapter X 

Supervisory Appeals Process 

AGENCY: Consumer Financial Protection 

Bureau. 

ACTION: Supervisory appeals process; 

update. 

SUMMARY: The Consumer Financial 

Protection Bureau (CFPB or Bureau) is 

updating its internal supervisory 

appeals process for institutions seeking 

to appeal a compliance rating or an 

adverse material finding. 

DATES: This revised supervisory appeals 

process is applicable as of February 22, 

2024. 

FOR FURTHER INFORMATION CONTACT: 

George Karithanom, Regulatory 

Implementation & Guidance Program 

Analyst, Office of Regulations, at (202) 

435–7700 or CFPB_supervisoryappeals@

cfpb.gov. If you require this document 

in an alternative electronic format, 

please contact CFPB_Accessibility@

cfpb.gov. 

SUPPLEMENTARY INFORMATION: 

I. Overview 

The CFPB first published its process 

for supervisory appeals on October 31, 

2012, as Bureau Bulletin 2012–07.1 The 

process was substantially modeled upon 

the practices of the prudential 

regulators. On November 3, 2015, the 

Bureau revised its process, superseding 

the 2012 Bulletin.2 The Bureau has 

reviewed its current process and the 

revisions made by prudential regulators 

since 2015. As a result, the Bureau is 

revising its process to broaden the 

Bureau officials eligible to evaluate 

appealed matters, the options for 

resolving an appeal, and the matters 

subject to appeal. 

The main changes in the revised 

supervisory appeals process, which is 

set out in part II below, are as follows. 

First, the revised process broadens the 

pool of potential members of the 

appeals committee to include any CFPB 

manager who did not participate in the 

underlying matter being appealed and 

who has relevant expertise on the 

issue(s) raised by the appeal, not only 

managers from Supervision as under the 

previous process. The Supervision 

Director will select three CFPB 

managers who meet the criteria to serve 

on the appeals committee, which will 

advise the Supervision Director on how 

to resolve the appeal. The CFPB’s 

General Counsel will designate legal 

counsel to advise the committee. 

Second, under the revised process there 

is a new option for resolving the appeal, 

which is remanding the matter to 

Supervision staff for consideration of a 

modified finding, in addition to the 

existing options of upholding or 

rescinding the finding. Third, under the 

revised process institutions may file an 

appeal as to any compliance rating 

issued to the institution, not only an 

adverse rating (e.g., 3, 4, or 5 rating) as 

under the previous process. Finally, the 

revised process includes additional 

clarifying changes and specifies that it 

applies to appeals pending on the date 

it is published. 

II. Appeals of Supervisory Matters 3

A. General Purpose 

To promote a constructive 

supervisory relationship with the 

financial service providers, including 

depository institutions, under its 

jurisdiction, the Consumer Financial 

Protection Bureau (CFPB or Bureau) 

provides a supervisory appeals process. 

Throughout the supervisory process, 

the CFPB and its supervised entities 

should engage in an open and candid 

dialogue on a continuing basis. During 

an examination or review, CFPB 

examiners and regional management 

should ensure that supervised entities 

understand examiner concerns and 

issues that arise. In turn, supervised 

entities should present all relevant 

information in a timely manner during 

the examination or review process to 

ensure that examiners’ analyses are 

complete. 

After an examination or targeted 

review, if a supervised entity disagrees 

with a compliance rating 4 or any 

underlying adverse findings set forth in 

the relevant examination report, or 

adverse findings set forth in a 

supervisory letter,5 the entity may 

appeal. The key aspects of the appeals 

process as outlined in this document 

are: 

• CFPB managers who did not 

participate in the supervisory matter 

and whose knowledge and background 

enable them to meaningfully evaluate 

supervisory matters will be involved in 

reviewing appeals; 

• The CFPB will only entertain 

appeals in writing, with documentation 

supporting the appeal, and within 

specified timeframes; and 

• The CFPB will take measures to 

ensure that an entity’s filing of an 

appeal does not have an adverse effect 

on the entity’s relationship with the 

CFPB. 

B. Entities Who May Initiate Appeals 

Under the circumstances noted below, 

any entity subject to an examination 

under the CFPB’s supervisory authority 

may use the appeals process. 

C. Supervisory Matters Subject to 

Appeal 

An entity may appeal final CFPB 

compliance ratings or any underlying 

adverse findings, or adverse findings 

conveyed to an entity in a supervisory 

letter. Adverse findings are those that 

result in a Matter Requiring Attention 

by the board of directors or principal(s) 

of the entity. 


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6A supervisory letter or an examination report is 

related to an investigation or enforcement action 

when it contains any part of the underlying facts 

and circumstances that form the basis of the 

investigation or enforcement action. 

7After an investigation or enforcement action has 

been resolved, the supervisory findings in a related 

supervisory letter or examination report may be 

appealed. In that case, the date of resolution of the 

investigation or public enforcement action will be 

treated as the date of the email transmitting an 

appealable supervisory letter or examination report 

for the purpose of determining the deadline for a 

written record. 

8The date that the entity or CFPB receives by 

email any material referenced in this supervisory 

appeals process will be considered the receipt date. 

9 If the staff reviewing the appeal notifies the 

supervised entity that the entity has not submitted 

sufficient supporting information, the entity will 

have 10 business days within which to resubmit the 

appeal with supporting information. 

10The position of ‘‘Supervision Director’’ 

encompasses the combined positions of the 

Assistant Director for Supervision Policy and the 

Assistant Director for Supervision Examinations. 

Previously, these positions were occupied by the 

same individual, and the Bureau is in the process 

of consolidating these two positions into one 

Supervision Director position. In this supervisory 

appeals process, the Supervision Director means the 

Supervision Director or another CFPB employee 

designated by the CFPB Director or by the 

Supervision Director. 

11 In this supervisory appeals process, the 

‘‘General Counsel’’ means the General Counsel of 

the CFPB or that person’s designee. 

12Any such presentation must be brief and must 

be limited to issues raised in the written appeal. 

13 12 CFR 1070.40–48. 

An entity may not use this 

supervisory appeals process to appeal: 

• Preliminary supervisory matters 

(including preliminary findings); 

• CFPB examiners’ decisions to 

initiate supervisory measures, such as 

memoranda of understanding; 

• Enforcement-related actions and 

decisions, including cease-and-desist 

orders and determinations to proceed 

with an investigation or public 

enforcement action; 

• Adverse findings or an 

unsatisfactory rating contained in a 

supervisory letter or examination report 

related 6 to a recommended or pending 

investigation or public enforcement 

action; 7 or 

• Referrals of information to other 

law enforcement and regulatory 

agencies. 

An entity may only appeal a finding 

once. For example, an entity that 

receives a rating in an examination 

report that is based on an earlier finding 

memorialized in a supervisory letter 

may appeal the letter or the report, but 

not both. 

D. Pre-Appeal Resolution Efforts 

The CFPB expects its supervisory 

staff, including examiners and regional 

management, to discuss with supervised 

entities their preliminary findings and 

any proposed ratings before an 

examination or supervisory review is 

completed. In addition, the CFPB 

encourages supervised entities to fully 

engage in this dialogue and, when 

disagreements occur, to present all 

available information to support this 

position. Through such communication, 

the CFPB anticipates that most disputes 

can be resolved before an examination 

is final. 

E. Appeal Process 

Within 30 business days of the date of 

the email transmitting an appealable 

examination report containing a 

compliance rating, or an appealable 

supervisory letter, the supervised entity 

may submit a written appeal via email 

to: CFPB_supervisoryappeals@cfpb.gov.8

The subject line of the email should 

state the name of the supervised entity 

and include the words: ‘‘APPEAL OF 

SUPERVISORY MATTER.’’ The appeal 

request should include: 

a. A description of the issues in 

dispute and appropriate supporting 

information; 9

b. A summary of informal efforts 

made to resolve the dispute with 

examiners or other CFPB Supervision 

staff; 

c. A copy of a board resolution or 

other appropriate formal document 

issued by the entity’s board of directors 

or principal(s), which authorizes the 

filing of an appeal; and 

d. A statement of whether or not the 

entity’s board of directors or principal(s) 

requests an oral presentation to the 

CFPB. If an oral presentation is 

requested, a member of the board or 

principal must participate in and lead 

the oral presentation. 

This revised supervisory appeals 

process applies to any appeal pending 

with Supervision on the date it is 

published in the Federal Register. 

Within five business days of receipt of 

an appeal, the Supervision Director 10

will designate a committee composed of 

three CFPB managers who were not 

involved in the supervisory matter being 

appealed and who have relevant 

experience on the issue raised by the 

appeal. The General Counsel 11 will 

designate legal counsel to advise the 

committee. The committee will: 

a. Review the supervised entity’s 

written appeal, the examination report 

or supervisory letter at issue, and 

supporting documentation for both; 

b. If applicable, send a copy of the 

appeal to the prudential regulator of the 

appealing entity and solicit its views; 

c. Solicit input from other CFPB 

personnel, such as examination staff 

and CFPB Headquarters staff (including 

those involved in the specific matter 

under appeal); and 

d. Hear a presentation from the 

appealing entity,12 if requested. 

The committee will review the 

supervisory letter or examination report 

for consistency with the policies, 

practices, and mission of the CFPB and 

the overall reasonableness of the 

examiners’ determinations, and support 

offered for, the supervisory findings. 

Only the facts and circumstances upon 

which a supervisory finding was made 

will be considered by the committee. It 

is the appellant’s burden to show that 

the contested supervisory findings 

should be modified or set aside. 

Upon conclusion of the review, the 

committee will advise the Supervision 

Director in formulating a written 

decision on the appeal. The decision 

may uphold or rescind the finding; 

alternatively, the decision may remand 

the finding to Supervision staff who will 

consider a modified finding. The 

decision will be transmitted to the 

appealing entity by email, copying 

appropriate internal parties and the 

prudential regulator or state regulator 

where appropriate. The CFPB expects 

that a decision will be issued within 60 

business days from the assignment of 

the appeal to the committee, but the 

committee will notify the supervised 

entity by email if a longer period will 

be needed. 

The decision under the previous 

paragraph cannot be the subject of 

another appeal under this supervisory 

appeals process. 

F. Confidentiality 

The appeals process will be 

confidential and submissions by 

supervised entities will be treated in 

accordance with the CFPB regulations 

and guidance on confidential 

supervisory information.13 The CFPB 

may in the future publish summaries of 

issues raised in appeals, and the 

outcomes of such appeals, in a manner 

that will protect from disclosure the 

identity of the appealing entity and any 

other confidential information. 

G. Role of the CFPB Ombudsman Office 

The CFPB Ombudsman Office serves 

as an independent, impartial, and 

confidential resource. It will act as a 

liaison between supervised entities and 

the CFPB, providing information about 

the appeals process. The Ombudsman 

will facilitate resolution of any processrelated issues before an appeal is filed 

with the CFPB and will address processrelated issues during the appeal. A 

supervised entity’s reaching out to the 


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Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Rules and Regulations 13265 

14 5 U.S.C. 553(b). 

15 44 U.S.C. 3501–3521. 

Ombudsman will not delay or stay any 

statutory, regulatory, or agency 

timeframes. 

H. Effect on the Supervisory 

Relationship 

As noted previously, the CFPB 

encourages an open dialogue with its 

supervised entities and views appeals as 

one aspect of such dialogue. As such, 

the CFPB will take measures to ensure 

that an entity’s filing of an appeal does 

not have a negative effect on its 

supervisory relationship with the CFPB. 

Any entity with concerns about its 

relationship with the CFPB should 

contact the CFPB’s Ombudsman who 

will handle such concerns in a 

confidential manner, if requested. 

Information on how to contact the 

Ombudsman can be found at http://

www.consumerfinance.gov/ 

ombudsman/. 

III. Regulatory Matters 

This supervisory appeals process is a 

rule of agency organization, procedure, 

or practice under the Administrative 

Procedure Act.14

The CFPB has determined that this 

supervisory appeals process does not 

impose any new or revise any existing 

recordkeeping, reporting, or disclosure 

requirements on covered entities or 

members of the public that would be 

collections of information requiring 

approval by the Office of Management 

and Budget under the Paperwork 

Reduction Act.15

Rohit Chopra, 

Director, Consumer Financial Protection 

Bureau. 

[FR Doc. 2024–03615 Filed 2–21–24; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2023–2002; Project 

Identifier MCAI–2023–00176–E; Amendment 

39–22668; AD 2024–02–04] 

RIN 2120–AA64 

Airworthiness Directives; GE Aviation 

Czech s.r.o. (Type Certificate 

Previously Held by WALTER Engines 

a.s., Walter a.s., and MOTORLET a.s.) 

Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is superseding 

Airworthiness Directive (AD) 2021–13– 

07 for all GE Aviation Czech s.r.o. 

(GEAC) (type certificate previously held 

by WALTER Engine a.s., Walter a.s., and 

MOTORLET a.s.) Model M601D–11, 

M601E–11, M601E–11A, M601E–11AS, 

M601E–11S, and M601F engines. AD 

2021–13–07 required recalculating the 

life of critical parts and, depending on 

the results of the recalculation, 

replacing those critical parts. AD 2021– 

13–07 also required replacing a certain 

compressor case. Since the FAA issued 

AD 2021–13–07, the manufacturer 

published the airworthiness limitations 

section (ALS) of the existing engine 

maintenance manual (EMM), which 

includes the calculations for the life of 

critical parts addressed by AD 2021–13– 

07 and prompted this AD. This AD 

continues to require the replacement of 

a certain centrifugal compressor case. 

This AD also includes an additional part 

number as an option for the 

replacement, and limits the 

applicability of this AD, as specified in 

a European Union Aviation Safety 

Agency (EASA) AD, which is 

incorporated by reference. The FAA is 

issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD is effective March 28, 

2024. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of March 28, 2024. 

ADDRESSES: 

AD Docket: You may examine the AD 

docket at regulations.gov under Docket 

No. FAA–2023–2002; or in person at 

Docket Operations between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal holidays. The AD docket 

contains this final rule, the mandatory 

continuing airworthiness information 

(MCAI), any comments received, and 

other information. The address for 

Docket Operations is U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

Material Incorporated by Reference: 

• For service information identified 

in this final rule, contact EASA, KonradAdenauer-Ufer 3, 50668 Cologne, 

Germany; phone: +49 221 8999 000; 

email: ADs@easa.europa.eu; website: 

easa.europa.eu. You may find this 

material on the EASA website at 

ad.easa.europa.eu. 

• You may view this service 

information at the FAA, Airworthiness 

Products Section, Operational Safety 

Branch, 1200 District Avenue, 

Burlington, MA 01803. For information 

on the availability of this material at the 

FAA, call (817) 222–5110. It is also 

available at regulations.gov under 

Docket No. FAA–2023–2002. 

FOR FURTHER INFORMATION CONTACT: 

Barbara Caufield, Aviation Safety 

Engineer, FAA, 1600 Stewart Avenue, 

Suite 410, Westbury, NY 11590; phone: 

(781) 238–7146; email: 

barbara.caufield@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to supersede AD 2021–13–07, 

Amendment 39–21612 (86 FR 31601, 

June 15, 2021), (AD 2021–13–07). AD 

2021–13–07 applied to all GEAC Model 

M601D–11, M601E–11, M601E–11A, 

M601E–11AS, M601E–11S, and M601F 

engines. AD 2021–13–07 required 

recalculating the life of critical parts 

and, depending on the results of the 

recalculation, replacing critical parts. 

AD 2021–13–07 also requires replacing 

a certain compressor case. The FAA 

issued AD 2021–13–07 to prevent the 

failure of the engine. 

The NPRM published in the Federal 

Register on October 27, 2023 (88 FR 

73778). The NPRM was prompted by 

EASA AD 2021–0125R1, dated January 

30, 2023 (EASA AD 2021–0125R1) (also 

referred to as the MCAI), issued by 

EASA, which is the Technical Agent for 

the Member States of the European 

Union. The MCAI states that the 

manufacturer published the ALS, which 

incorporates certain requirements 

addressed by EASA Emergency AD 

2021–0125–E, and that EASA published 

EASA AD 2023–0020, dated January 23, 

2023 (EASA AD 2023–0020), which 

requires accomplishment of the actions 

specified in the ALS. The MCAI limits 

the applicability to M601E engines with 

a centrifugal compressor case having 

part number M601–154.61 installed and 

removes the requirements that have 

been incorporated in the ALS. 

You may examine the MCAI in the 

AD docket at regulations.gov under 

Docket No. FAA–2023–2002. 

In the NPRM, the FAA proposed to 

continue to require the replacement of 

a certain centrifugal compressor case. In 

the NPRM, the FAA also proposed to 

require accomplishing the actions 

specified in the MCAI. 

Discussion of Final Airworthiness 

Directive 

Comments 

The FAA received no comments on 

the NPRM or on the determination of 

the costs. 


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