FORT WORTH, Texas — Evidently the auto finance industry
isn't the top target of the Consumer Financial Protection Bureau just yet.

CFPB assistant director Richard Hackett said during his
keynote presentation Thursday during the National Automotive Finance
Association's 16th annual conference that mortgages, payday loans and student
loans are the current supervisory priorities. Hackett indicated the only auto
finance examinations at this time are ones that involve large lenders that operate
auto finance divisions.

Hackett responded to questions submitted in advance by
association members. After describing the overall structure of the CFPB, some
of the points made by Hackett included:

—The CFPB is on pace to receive 70,000 complaints a year, and
as the information flows it will help identify products and suppliers that
should be the CFPB's focus. Information collection and public hearings are also
part of the process of setting priorities.

—The CFBP-Consumer Response System works toward resolving
issues by involving the subject of the complaint in the solution. Only when the
consumer is not satisfied after the process is an investigator assigned.

—Close working relationships with both the Federal Trade
Commission and states' attorneys general are being established as encouraged by
the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. An
effort is being made to avoid duplication with the FTC.

The session with Hackett was conducted by former FTC
executive Joel Winston, who is now a partner in the Washington, D.C. office of
Hudson Cook, LLP.

Hackett, who spent over 30 years in private practice
representing creditors, leads the installment and liquidity lending group in
the research, markets and rulemaking division of the CFPB. His responsibilities
at the bureau include advising all divisions on market information and policy
and legal issues in the installment and specialty lending areas, including
vehicle finance.

The NAF Association's annual event wraps up today.