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Kathy Kraninger said that rulemakings by the Bureau of Consumer Financial Protection should be tailored “to reduce the burden of compliance, particularly on consumers and smaller marketplace participants,” during her nomination hearing before the Senate Banking Committee Thursday.

Kraninger outlined four priorities for the bureau during her opening statement, saying that the bureau should be fair and transparent, work closely with other financial regulators and states on supervision and enforcement, recognize the importance of protecting consumers’ personal data, and be accountable for its actions. Some committee members also cited the need for a commission to oversee the bureau rather than its current single-director structure – a move long advocated for by NAFCU.

Along with advocating for a commission-led bureau, NAFCU has repeatedly asked the bureau to use its exemption authority under the Dodd-Frank Act to exempt credit unions from certain rulemakings and instead focus on the bad actors in the marketplace. Kraninger noted during the hearing that she does support the bureau exercising its authority when bad actors are at work.

Kraninger currently serves as an associate director at the Office of Management and Budget (OMB); she was nominated last month to lead the bureau by President Donald Trump. She faced many questions from Democratic members of the committee over her lack of financial experience as Republicans highlighted her management experience and many years of government service.

On the collection of consumers’ personal data, Kraninger said it would be limited to only “what is needed and required under law,” which is aligned with NAFCU’s position. Sen. Patrick Toomey, R-Pa., asked Kraninger specifically about the Dodd-Frank Act mandate to collect data from certain small businesses (under section 1071) and if she will work to minimize the cost burden for these entities. She responded yes, noting that this part of the law will be carried out as narrowly as it allows. NAFCU has urged the bureau to exempt credit unions, which are subject to strict limits regarding member business lending, from any future rulemaking that would compel lenders to disclose small-business loan information.

She was also asked by several committee members her stance on payday lending and its effect on consumers. Kraninger said she supported competition in the small-dollar lending space and commended the Office of the Comptroller of the Currency's guidance to encourage banks to offer short-term, small-dollar loans.

If confirmed to lead the bureau, Kraninger would take over from Mick Mulvaney, who has served as acting director at the bureau since November; he also serves as the director of the OMB.

Kraninger’s nomination now awaits a vote of approval by the Senate Banking Committee before it moves on to the full Senate for consideration.