BCFP Reorganizes Student Loan Division

The bureau is combining its student loan and financial education offices as it continues to focus on reviewing regulatory priorities and processes under Acting Director Mick Mulvaney’s leadership.

5/10/2018 12:30 PM

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BCFP Reorganizes Student Loan Division

The Bureau of Consumer Financial Protection announced May 9 that it is combining its student loan office with the financial education division. It also released its Spring 2018 Unified Agenda of Regulatory and Deregulatory Actions without mention of student loan servicing initiatives.

BCFP Acting Director Mick Mulvaney, according to The Hill, issued a staff memo May 9 stating the office of Students and Young Consumers, currently part of the Consumer Education and Engagement Division, will be moved into the Office of Financial Education.

The bureau releases semiannual regulatory agendas twice a year in voluntary conjunction with a broader initiative led by the Office of Management and Budget, which Mulvaney also leads, to publish a Unified Agenda of Regulatory and Deregulatory Actions across the federal government.

Under Mulvaney’s leadership, the bureau continues to focus on reviewing its functions and rulemaking processes, including through a series of Requests for Information allowing for public and industry input on those matters.

The latest regulatory agenda also states that “the Bureau is launching initiatives to review inherited regulations for the purpose of ensuring that outdated, unnecessary or unduly burdensome regulations are regularly identified and addressed in order to reduce unwarranted regulatory burdens, as well as to fulfill other purposes and objectives of the underlying statutes and the Bureau pursuant to the Dodd-Frank Act.”

According to media reports, the bureau’s Student Loan Ombudsman will remain on staff.

Regulation of student loan servicing practices was a strong focus at the bureau during President Barack Obama’s tenure and under the leadership of former director Richard Cordray, dating back to at least 2015.

At that time, the bureau released results of a public inquiry on student loan servicing practices in a comprehensive report that includes recommendations for reform and feedback from student loan borrowers and representatives of the servicing industry, ACA International previously reported.

The changes in the student loan servicing division could be another opportunity for the accounts receivable management industry to provide input as the bureau continues to critically evaluate its role and processes and identify areas for improvement.

For now, bureau Spokesman and Chief Communications Officer John Czwartacki issued a statement to The Hill noting that the reorganization is a “very modest organizational chart change to keep the Bureau in line with the statute.”

“The work of the office continues, personnel are all on the job and working on the same material as they were before,” Czwartacki said in the article. “The bottom line is there is no functional or even practical change.”


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

BCFP Reorganizes Student Loan Division

The Bureau of Consumer Financial Protection announced May 9 that it is combining its student loan office with the financial education division. It also released its Spring 2018 Unified Agenda of Regulatory and Deregulatory Actions without mention of student loan servicing initiatives.

BCFP Acting Director Mick Mulvaney, according to The Hill, issued a staff memo May 9 stating the office of Students and Young Consumers, currently part of the Consumer Education and Engagement Division, will be moved into the Office of Financial Education.

The bureau releases semiannual regulatory agendas twice a year in voluntary conjunction with a broader initiative led by the Office of Management and Budget, which Mulvaney also leads, to publish a Unified Agenda of Regulatory and Deregulatory Actions across the federal government.

Under Mulvaney’s leadership, the bureau continues to focus on reviewing its functions and rulemaking processes, including through a series of Requests for Information allowing for public and industry input on those matters.

The latest regulatory agenda also states that “the Bureau is launching initiatives to review inherited regulations for the purpose of ensuring that outdated, unnecessary or unduly burdensome regulations are regularly identified and addressed in order to reduce unwarranted regulatory burdens, as well as to fulfill other purposes and objectives of the underlying statutes and the Bureau pursuant to the Dodd-Frank Act.”

According to media reports, the bureau’s Student Loan Ombudsman will remain on staff.

Regulation of student loan servicing practices was a strong focus at the bureau during President Barack Obama’s tenure and under the leadership of former director Richard Cordray, dating back to at least 2015.

At that time, the bureau released results of a public inquiry on student loan servicing practices in a comprehensive report that includes recommendations for reform and feedback from student loan borrowers and representatives of the servicing industry, ACA International previously reported.

The changes in the student loan servicing division could be another opportunity for the accounts receivable management industry to provide input as the bureau continues to critically evaluate its role and processes and identify areas for improvement.

For now, bureau Spokesman and Chief Communications Officer John Czwartacki issued a statement to The Hill noting that the reorganization is a “very modest organizational chart change to keep the Bureau in line with the statute.”

“The work of the office continues, personnel are all on the job and working on the same material as they were before,” Czwartacki said in the article. “The bottom line is there is no functional or even practical change.”


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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