Loan impact
From the rule text · verifiedApplies to: Applies to covered persons and service providers subject to State enforcement of the Consumer Financial Protection Act; no loan-level requirement changes.
- Affected area
- Enforcement
- Exceptions
- Does not affect States' authority under any separate provision of State or Federal law; Does not affect States' independent action when the Bureau has not initiated its own action
- Effective
- May 15, 2025
- Applicability confidence
- Verified: every row above is supported by the source text
Supporting quotes from the rule
- exceptions“The Bureau emphasizes that, in rescinding the May 26, 2022, interpretive rule related to States’ authority under the CFPA, it is not altering, limiting, or affecting the authority of States to take any action authorized by any separate provision of State or Federal law.”
- exceptions“This rescission does not affect States’ ability to undertake independent enforcement or regulatory action when the Bureau has not initiated its own action against an entity.”
- affected areas“Because the most natural reading of the CFPA is that the limits in sections 1027 and 1029 apply to State enforcement under section 1042, the CFPB rescinds the portion of the May 26, 2022, interpretive rule that took the contrary (and incorrect) position.”
What changed
From the rule text| Requirement | Previously | Now |
|---|---|---|
| Rescission of 2022 interpretive rule on State enforcement authority under CFPA section 1042Removed | Previously: The 2022 interpretive rule concluded that the section 1027 and 1029 limits do not extend to States exercising enforcement authority under section 1042. | The May 2022 interpretive rule is withdrawn; State authority under section 1042 is limited to enforcing the CFPA, subject to the section 1027 and 1029 limits, and parallel State and Bureau actions are not contemplated. |
What to do
AWACS interpretation · not source languageWhat to review: First, note that no change here is mandatory: the May 2022 interpretive rule on State enforcement under section 1042 is withdrawn as of May 15, 2025, and the record imposes no new lender requirements, so compliance may simply read it to understand the section 1027 and 1029 limits as applied to States.
QC implications
- No new lender requirement comes from this record, so QC has no new loan-level test to add.
- If QC reviews licensing enforcement materials, it can check that they no longer rely on the withdrawn May 2022 interpretive rule.
- The record leaves States' authority under separate State or Federal law unchanged, and also leaves unchanged their independent action when the Bureau has not started its own action, so QC should not treat those as affected.
Source and record
Version 1 · archivedChecks passed
- Schema valid
- Effective quotes verbatim
- Document ID appears in the source
- Doc id matches catalog
- Mandatory status is backed by requirement language
- Mandatory entries have requirement language
- Published on present
- Title summary length
- Controlled vocabulary
- No placeholder tokens
- Source link resolves
- Loan impact quotes verbatim
- Loan impact vocabulary
- Changes quoted
- Impact type consistent
- Every required change is backed by obligation language
- Only new or tightened changes are marked required
- Loan impact covers every required change
- Quotes are complete sentences
- Unflagged must
- Diff complete
- Mandatory date resolved
- Audience verbatim
- Scope residential
- Out of scope
- Published in window
- Interpretation schema valid
- Interpretation separate
Source
- Interpretive Rule FR Doc. 2025-08641 (official) ↗ (opens in a new tab)
- Archived copy, SHA-256 885e944587ca…
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