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

25397 

Vol. 87, No. 83 

Friday, April 29, 2022 

1 12 U.S.C. 5514(a)(1)(C). The Bureau must base 

such reasonable-cause determinations on 

complaints collected by the Bureau under 12 U.S.C. 

5493(b)(3), or on information collected from other 

sources. Id. 

2 78 FR 40351 (July 3, 2013); see also 85 FR 75194 

(Nov. 24, 2020) (updating certain cross-references to 

12 CFR part 1070). 

3The Bureau also notes three features of this 

provision. First, the computation of ‘‘days’’ is 

governed by existing § 1091.114. Second, the 

Director’s authority regarding public release could 

be delegated to a designee of the Director under 

existing § 1091.101. Third, the Bureau is not 

extending the staff separation-of-functions 

requirement in § 1091.109(c), which applies to the 

Director’s final decision and order, to the Director’s 

subsequent determination regarding public release. 

Doing so would not be required by law, and the 

routine determination of whether to post material 

on the Bureau’s website is not sufficiently 

significant to warrant doing so. 

4 5 U.S.C. 552(b)(4), (b)(6). 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1091 

[Docket No. CFPB–2022–0024] 

Supervisory Authority Over Certain 

Nonbank Covered Persons Based on 

Risk Determination; Public Release of 

Decisions and Orders 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Procedural rule; request for 

public comment. 

SUMMARY: The Consumer Financial 

Protection Bureau (Bureau) is amending 

an aspect of procedures for establishing 

supervisory authority based on a risk 

determination. Specifically, the Bureau 

is adding a mechanism for the Bureau 

to make final decisions and orders in 

these proceedings public. The Bureau 

welcomes comments on this rule, and 

the Bureau may make further 

amendments if it receives comments 

warranting changes. 

DATES: This procedural rule is effective 

on April 29, 2022. Comments must be 

received on or before May 31, 2022. 

ADDRESSES: You may submit comments, 

identified by Docket No. CFPB–2022– 

0024, by any of the following methods: 

• Federal eRulemaking Portal: 

https://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Email: 2022-Amendment-to-Part1091@cfpb.gov. Include Docket No. 

CFPB–2022–0024 in the subject line of 

the message. 

• Mail/Hand Delivery/Courier: 

Comment Intake—Supervisory 

Authority Over Certain Nonbank 

Covered Persons Based on Risk 

Determination; Public Release of 

Decisions and Orders, Consumer 

Financial Protection Bureau, 1700 G 

Street NW, Washington, DC 20552. 

Instructions: The Bureau encourages 

the early submission of comments. All 

submissions should include the agency 

name and docket number for this 

rulemaking. Because paper mail in the 

Washington, DC area and at the Bureau 

is subject to delay, and in light of 

difficulties associated with mail and 

hand deliveries during the COVID–19 

pandemic, commenters are encouraged 

to submit comments electronically. In 

general, all comments received will be 

posted without change to https://

www.regulations.gov. In addition, once 

the Bureau’s headquarters reopens, 

comments will be available for public 

inspection and copying at 1700 G Street 

NW, Washington, DC 20552, on official 

business days between the hours of 10 

a.m. and 5 p.m. Eastern Time. At that 

time, you can make an appointment to 

inspect the documents by telephoning 

202–435–7275. 

All comments, including attachments 

and other supporting materials, will 

become part of the public record and 

subject to public disclosure. Proprietary 

information or sensitive personal 

information, such as account numbers 

or Social Security numbers, or names of 

other individuals, should not be 

included. Comments will not be edited 

to remove any identifying or contact 

information. 

FOR FURTHER INFORMATION CONTACT: 

Christopher Shelton, Senior Counsel, 

Legal Division, at 202–435–7700. If you 

require this document in an alternative 

electronic format, please contact CFPB_

Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: 

I. Discussion 

Among other sources of supervisory 

authority, the Bureau can supervise a 

nonbank covered person that the Bureau 

‘‘has reasonable cause to determine, by 

order, after notice to the covered person 

and a reasonable opportunity for such 

covered person to respond . . . is 

engaging, or has engaged, in conduct 

that poses risks to consumers with 

regard to the offering or provision of 

consumer financial products or 

services.’’ 1 The Bureau issued a 

procedural rule in 2013 to govern these 

proceedings.2 Section 1091.115(c) of the 

existing rule provides, in summary, that 

documents, records or other items in 

connection with a proceeding under 

part 1091 shall be deemed confidential 

supervisory information. 

The Bureau is now adding a new 

§ 1091.115(c)(2), which provides an 

exception regarding final decisions and 

orders by the Director. A central 

principle of the supervisory process is 

confidentiality. At the same time, these 

decisions and orders present unique 

considerations compared to other 

supervisory activity. There is a public 

interest in transparency when it comes 

to these potentially significant rulings 

by the Director as head of the agency. 

Also, if a decision or order is publicly 

released, it would be available as a 

precedent in future proceedings. 

Accordingly, the Bureau believes that 

there should be a procedural 

mechanism to determine whether all or 

part of a decision or order should be 

publicly released. The process 

established in § 1091.115(c)(2) is a 

straightforward one. In summary, within 

seven days of service of the decision or 

order, the respondent has the option of 

filing a submission on this issue, and 

then the Director will determine 

whether the decision or order will be 

released on the Bureau’s website, in 

whole or in part.3

In this rule, the Bureau is not 

endeavoring to codify a standard on the 

issue of public release. However, the 

Bureau generally anticipates applying 

Exemptions 4 and 6 of the Freedom of 

Information Act to information 

submitted by respondents that is 

reflected in final decisions and orders.4

Exemption 4 applies to ‘‘trade secrets 

and commercial or financial information 

obtained from a person and privileged 

or confidential,’’ while Exemption 6 

applies to ‘‘personnel and medical files 

and similar files the disclosure of which 

would constitute a clearly unwarranted 


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25398 Federal Register / Vol. 87, No. 83 / Friday, April 29, 2022 / Rules and Regulations 

5 Id. 

6 5 U.S.C. 553(b). 

7 5 U.S.C. 603, 604. 

8 5 U.S.C. 605(b). 9 44 U.S.C. 3501–3521. 

invasion of personal privacy.’’ 5 The 

Bureau would also consider whether 

there are other reasons to not publicly 

release a final decision or order, in 

whole or in part. The Bureau welcomes 

any comments on whether it should 

amend the rule to codify a standard for 

determinations regarding public release. 

The Bureau notes that this rule will 

have limited effects on the public. 

Nonbank covered persons that are 

respondents may incur incidental costs, 

if they choose to prepare submissions 

on the issue of public release. The rule 

itself will not trigger public release of 

decisions and orders, since it simply 

establishes a procedure to consider that 

issue. If the Bureau does ultimately 

decide to release a decision or order, 

that should generally benefit covered 

persons, consumers, and other members 

of the public by giving them a better 

understanding of the Bureau’s 

decisionmaking. 

In formulating this rule, the Bureau 

has consulted or offered to consult with 

the prudential regulators and the 

Federal Trade Commission. 

II. Regulatory Requirements 

As a rule of agency organization, 

procedure, or practice, this rule is 

exempt from the notice-and-comment 

rulemaking requirements of the 

Administrative Procedure Act.6

Because no notice of proposed 

rulemaking is required, the Regulatory 

Flexibility Act does not require an 

initial or final regulatory flexibility 

analysis.7 Moreover, the Bureau’s 

Director certifies that this rule will not 

have a significant economic impact on 

a substantial number of small entities. 

Therefore, an analysis is also not 

required for that reason.8 As a result of 

the rule, respondents in the relevant 

proceedings may choose to make 

submissions on the issue of public 

release. Some of these respondents may 

be small entities under the Regulatory 

Flexibility Act, but they would 

represent a very small fraction of small 

entities in consumer financial services 

markets. Accordingly, the number of 

small entities affected is not substantial. 

The Bureau has also determined that 

this rule 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.9

List of Subjects in 12 CFR Part 1091 

Administrative practice and 

procedure, Consumer protection, Credit, 

Trade practices. 

Authority and Issuance 

For the reasons set forth above, the 

Bureau amends 12 CFR part 1091 as set 

forth below: 

PART 1091—PROCEDURAL RULE TO 

ESTABLISH SUPERVISORY 

AUTHORITY OVER CERTAIN 

NONBANK COVERED PERSONS 

BASED ON RISK DETERMINATION 

■ 1. The authority citation for part 1091 

continues to read as follows: 

Authority: 12 U.S.C. 5512(b)(1), 

5514(a)(1)(C), 5514(b)(7). 

■ 2. In § 1091.115, add headings to 

paragraphs (a) and (b) and revise 

paragraph (c) to read as follows: 

§ 1091.115 Change of time limits and 

confidentiality of proceedings. 

(a) Change of time limits. * * * 

(b) No substantive rights. * * * 

(c) Confidentiality—(1) General rule. 

In connection with a proceeding under 

this part, including a petition for 

termination under § 1091.113, all 

documents, records or other items 

submitted by a respondent to the 

Bureau, all documents prepared by, or 

on behalf of, or for the use of the 

Bureau, and any communications 

between the Bureau and a person, shall 

be deemed confidential supervisory 

information under 12 CFR 1070.2(i)(1). 

However, this paragraph does not apply 

to the version of a document that is 

released on the Bureau’s website under 

paragraph (c)(2). 

(2) Publication of final decisions and 

orders by the Director. The Director will 

make a determination regarding whether 

a decision or order under 

§ 1091.103(b)(2), § 1091.109(a), or 

§ 1091.113(e) will be publicly released 

on the Bureau’s website, in whole or in 

part. The respondent may file a 

submission regarding that issue, within 

seven days after service of the decision 

or order. The Director may also decide 

that the Director’s determination 

regarding public release will itself be 

released on the website, in whole or in 

part. Section 1091.109(c) is not 

applicable to determinations under this 

paragraph. 

Rohit Chopra, 

Director, Consumer Financial Protection 

Bureau. 

[FR Doc. 2022–09107 Filed 4–28–22; 8:45 am] 

BILLING CODE 4810–AM–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Parts 120 and 121 

[Docket No. SBA–2022–0003] 

Community Advantage Pilot Program 

AGENCY: Small Business Administration. 

ACTION: Notification of changes to 

Community Advantage Pilot Program, 

impact on regulations, and request for 

comments. 

SUMMARY: The Small Business 

Administration (SBA) continues to 

refine and improve the design of the 

Community Advantage (CA) Pilot 

Program. SBA is issuing this document 

to revise the CA Pilot Program 

requirements to encourage increased 

lending in historically underserved 

markets. 

DATES: The changes identified in this 

document take effect May 31, 2022. 

Comment date: Comments must be 

received on or before May 31, 2022. 

ADDRESSES: You may submit comments, 

identified by SBA docket number SBA2022–0003, by any of the following 

methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Darrel Eddingfield, Office of 

Financial Assistance, U.S. Small 

Business Administration, 409 Third 

Street SW, Washington, DC 20416. 

SBA will post all comments on 

https://www.regulations.gov. 

If you wish to submit confidential 

business information (CBI) as defined in 

the User Notice at https://

www.regulations.gov, please submit the 

information to Darrel Eddingfield, 

Office of Financial Assistance, U.S. 

Small Business Administration, 409 

Third Street SW, Washington, DC 

20416, or send an email to 

communityadvantage@sba.gov. 

Highlight the information that you 

consider to be CBI and explain why you 

believe SBA should hold this 

information as confidential. SBA will 

review the information and make the 

final determination as to whether it will 

publish the information. 

FOR FURTHER INFORMATION CONTACT: 

Darrel Eddingfield, Office of Financial 


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