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NAFCU and three other financial industry trades today strongly urged Senate leaders to pass legislation that would create a five-person, bipartisan board to govern the CFPB.

"The current single director structure leads to regulatory uncertainty for consumers, industry, and the economy," the groups said in a letter sent jointly to Senate leaders. "In contrast, a Senate-confirmed, bipartisan board or commission will provide a balanced and deliberative approach to supervision, regulation, and enforcement over financial institutions that is more in keeping with other financial regulators."

The letter, from NAFCU, CUNA, the Independent Community Bankers of America and the Consumer Bankers Association, was sent to Senate Majority Leader Mitch McConnell, R-Ky., and Senate Minority Leader-elect Chuck Schumer, D-N.Y.

The trades encouraged quick passage early next Congress of the CFPB commission measure so financial institutions and consumers have some certainty regarding rulemakings recently finalized and those still in process, including those addressing arbitration, payday lending, third-party debt collection and prepaid cards.

"It is critical for Congress to establish a 5-person commission to head the CFPB. This commission would provide invaluable stability and clarity for credit unions and their members as well as other financial institutions and consumers. This commission would ensure that the CFPB's leadership structure would not be vulnerable to being changed every four years at the will of the president," said NAFCU President and CEO Dan Berger.

The groups also raised concerns about the ongoing lawsuit, PHH Corporation v. CFPB, in which the U.S. Court of Appeals for the D.C. Circuit found the bureau's structure unconstitutional because it is headed by a single director who can be removed only for cause. They said the uncertainty of the case "inhibits the ability for financial institutions to plan for the future."