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House Financial Services Committee Chairman Jeb Hensarling, R-Texas, argued in a Wall Street Journal editorial Thursday that Congress should "terminate" CFPB funding through a budget reconciliation vote.

A reconciliation vote would require just a simple majority vote and would be immune from filibustering. After defunding the CFPB, Hensarling said Congress could transfer the bureau's consumer protection role to the Federal Trade Commission or to "traditional" bank regulators.

His editorial also called for the immediate removal of CFPB Director Richard Cordray.

"The CFPB is arguably the most powerful, least accountable agency in U.S. history. CFPB zealots have the power to determine the ‘fairness' of virtually every financial transaction in America," Hensarling wrote. "The agency defines its own powers and can launch investigations without cause, imposing virtually any fine or remedy, devoid of due process."

Hensarling also referenced the October federal court decision that the CFPB's single-director structure is unconstitutional, which he said would remain problematic even if the bureau's policies improved. The CFPB is currently petitioning for a full-court review of that decision.

House Financial Services subcommittee Chairman Sean Duffy, R-Wis., recently said the full committee aims to mark up a reintroduced "Financial CHOICE Act" in upcoming weeks. Introduced by Hensarling and passed by the panel last year, the "Financial CHOICE Act," includes numerous measures sought by NAFCU for credit union regulatory relief as well as repeal the Dodd-Frank Act's Durbin amendment.

A draft committee memorandum that was circulated yesterday said Republican lawmakers are considering changes to the bill that would include maintaining a single director for the bureau who could be removed by the president at will. The reported changes also include maintaining the current three-member board structure for the NCUA, which NAFCU has supported, and making it easier for credit unions to return to required capital levels necessary for additional regulatory relief.

NAFCU will continue to monitor the situation for its impact on credit unions.