July 22, 2011

NAFCU recognized as House passes CFPB reform

July 22, 2011 – The House worked late Thursday to approve legislation aimed at improving the newly active Consumer Financial Protection Bureau, and one congressman touted NAFCU's support for the bill from the House floor.

The Consumer Financial Protection Safety and Soundness Improvement Act of 2011, H.R. 1315, cleared the House by a 241-173 vote, but not before Rep. Sean Duffy, R-Wis., took to the House floor to single out NAFCU for championing the legislation.

When it was introduced by Duffy in its original form, H.R. 1315 was an individual, NAFCU-backed bill that would change the two-thirds majority vote that is currently required for the Financial Stability Oversight Council to challenge the CFPB on a regulatory matter to a simple majority. (It would also bar the CFPB director from voting in such a scenario).

In the end, H.R. 1315 became a larger package that also included H.R. 1121, The Responsible Consumer Financial Protection Regulations Act of 2011, and H.R. 1667, The Bureau of Consumer Financial Protection Transfer Clarification Act. The former would change the leadership of the CFPB from a single director to a bipartisan five person commission; the latter would delay the scheduled transfer of authority date if a director has not been confirmed by Congress. Both measures are supported by NAFCU.

Speaking on the House floor, Duffy reiterated several times that changing the vote threshold of the council and providing checks and balances on CFPB rulemaking will give credit unions and community banks a voice in the process.

The bill now heads to the Senate where its future remains uncertain.