The Consumer Financial Protection Bureau is closing nearly all of its roughly 2,000 outstanding “matters requiring attention” (MRAs), a move driven by the potentially imminent firing of nearly 90% of the agency’s employees, according to a published report. These MRAs, which flag compliance issues at supervised entities like banks, fintechs, and debt collectors, are being resolved, often without full remediation verification or examiner input, which is raising concerns among industry insiders. Some closures follow company requests or token changes, bypassing standard protocols, according to the report. Internally dubbed “death memos,” documents justifying these closures reflect the agency’s push to clear backlogs amid significant upheaval.
MRAs are a tool used by the CFPB’s supervisory operation that allows companies to address compliance lapses confidentially before escalation to public enforcement actions. These issues typically involve notifications to top executives and boards, with requirements for consumer remediation, policy overhauls, and proof of implementation.
Resolving the outstanding MRAs aligns with efforts to shrink the CFPB’s regulatory scope. The agency recently launched rulemaking to reduce oversight of “larger participants” in auto finance, international money transfers, debt collection, and consumer credit reporting. In April, leadership also ordered a 50% cut in supervisory “events,” redirecting focus toward traditional banks, potentially easing scrutiny on non-bank entities like collection agencies and debt buyers.
Compounding these changes, the CFPB faces drastic workforce reductions. A federal appeals court earlier this month lifted a stay pausing the potential layoffs, enabling acting director Russell Vought to proceed with plans to cut over 400 examination unit staff, leaving just 50. A Republican-led budget measure halves the CFPB’s funding from the Federal Reserve, further threatening its examination capacity.
