June 18, 2020

NAFCU-supported CFPB commission bill introduced in Senate

CFPBSen. Deb Fischer, R-Neb., yesterday introduced legislation to reform the CFPB's structure from a single director to a bipartisan commission. NAFCU has consistently advocated that the bureau's leadership structure should be reformed to a commission-based model to ensure transparency and stability.

“By establishing a bipartisan commission at the CFPB, consumers would benefit from more robust debate, diversity of thought, and a stable leadership structure at the agency,” said NAFCU President and CEO Dan Berger. “We thank Senator Deb Fischer for introducing this important legislation, and we encourage Congress to swiftly pass this bill. Until the CFPB's leadership structure is reformed by Congress, we look forward to continuing to work with Director Kathy Kraninger. Over the years, she has been responsive, transparent, and receptive to the needs of credit unions.”

House Financial Services Committee Member Blaine Luetkemeyer, R-Mo., introduced similar legislation with other Republican members of the committee in March that would reform the CFPB's governance structure to a bipartisan commission. NAFCU joined with 18 trade associations to voice support for the bill.

The U.S. Supreme Court in March heard oral arguments in the lawsuit brought by Seila Law challenging the CFPB's single-director structure. In addition, the bureau announced it would no longer defend its structure after years of lawsuits and calls to reform it from various stakeholders. This case could have implications on the structure of the Federal Housing Finance Agency (FHFA), as well.

NAFCU works closely with the CFPB to address issues impacting credit unions and will continue to monitor the legislation.