June 18, 2014

Cordray discusses QM, data collection, student loans

June 19, 2014 – CFPB Director Richard Cordray presented the bureau's semiannual report to the House Financial Services Committee Wednesday where he discussed and was questioned on the qualified mortgage rule, student loans and data collection and security.

Rep. Shelley Moore Capito, R-W.Va., chairman of the Subcommittee on Financial Institutions and Consumer Credit, expressed concern with the bureau's qualified mortgage rule, saying that consumers are not better off if they can't access mortgages from their local banks or credit unions.

Panel Ranking Member Gregory Meeks, D-N.Y., asked Cordray if the QM rule has had an impact on minority borrowers. Cordray said the QM rule hasn't had any negative effects on mortgages and referred to an article published Tuesday in American Banker noting the rule's "minimal" impact during its first six months of implementation.

Also addressed:

  • Data collection: Most subcommittee members asked about CFPB's data collection efforts and the amount of data the bureau collects, specifically religious affiliation, number of children and level of education. Cordray said CFPB would not utilize that type of data, but that did not assuage panel members.
  • Student loans: Rep. John Carney, D-Del., asked Cordray for his views on student loans and the rising costs of tuition. Cordray said he was concerned about the rising costs of tuition and said educational institutions should evaluate the impact of those costs on the public.
  • CFPB oversight: Rep. Lacy Clay, D-Mo., asked about the asset size of institutions subject to CFPB oversight. He asked whether CFPB would support raising this threshold from $10 billion to $50 billion (long been urged by NAFCU), noting that would still leave the bureau overseeing 70 percent of all institutions. Cordray said the compromise reached by Congress was $10 billion, but if Congress wants to address the issue, the bureau would supply technical assistance.