The Consumer Financial Protection Bureau (CFPB) has announced it will not be enforcing future registration deadlines under the Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders (12 CFR 1092) rule that was effective last year. To read more about the rule, see our previous alert on the Final Registration Rule. This rule required certain nonbank financial service companies to register with the CFPB if the company was subject to certain federal or state agency orders. The implementation of this registration process was being phased in over the last year. Companies in the first phase have already registered, companies in the second phase were in the process of registering, and companies in the third phase were about to start registering. Visit the CFPB website to find registration process information.
On April 11, 2025, the CFPB issued a press release stating it would not be enforcing the registration deadlines for phase two and three companies, and that it is also considering issuing a new rule to rescind or narrow the registration scope. In light of this recent CFPB announcement, even if a company is subject to an agency order that would require it to register with the CFPB in phase two or three of the rule implementation process, it is not necessary at this time to do so. Before registering, a company can wait and see if the CFPB decides to reinstate enforcement of the rule or make changes to the rule.
Note that even though the CFPB is not requiring registration under the rule at this time, many states require a company to post certain agency orders against the company on their Nationwide Multi-State Licensing System (NMLS) or to notify the state regulators directly. The NMLS posting and state regulator notifications are different and separate requirements from the CFPB rule. NMLS posting and state regulator notifications should still be completed as required.
Finance companies that have not already registered should determine if the company has been subject to orders that could fall under the rule. If a company is subject to applicable orders, it can choose to register with the CFPBor wait and see what the CFPB does regarding this rule in the future. For assistance in determining if your company is subject to any covered order that would require registration with the CFPB under this rule, please contact Shareholder Wendy Collins or another member of the Consumer Finance Practice.
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