MBA, Trade Groups Offer Support for CFPB Commission Bill

The Mortgage Bankers Association and nearly two dozen other industry trade groups expressed support for a bill that would alter governance of the Consumer Financial Protection Bureau from a single director to a five-person, bipartisan commission.

H.R. 5266 (https://www.congress.gov/bill/115th-congress/house-bill/5266), the Financial Product Safety Commission Act of 2018, was introduced Mar. 13. Introduced by Rep. Dennis Ross, R-Fla., with co-sponsors Reps. Kyrsten Sinema, D-Ariz., David Scott, D-Ga., and Ann Wagner, R-Mo., the bill would create a five-person commission, approved by the Senate, similar to other federal financial bodies such as the Securities and Exchange Commission. MBA has long-supported transitioning the CFPB governance structure to a commission.

In a letter to the bill’s sponsors, MBA and the other trade groups said such a commission would have popular support, citing a Morning Consult poll showing registered voters in eight “battleground” states support a commission structure by a three-to-one margin. The letter also noted previous similar bills have enjoyed support in the House.

“A Senate-confirmed, bipartisan commission will provide a balanced and deliberative approach to supervision, regulation and enforcement by encouraging input from all stakeholders,” the letter said. “The current single director structure leads to uncertainty as we have witnessed in the recent transition in CFPB leadership from the Obama Administration to the Trump Administration.”

The letter noted this uncertainty is not only borne by financial institutions providing significant lending services, “but it negatively impacts America’s consumers, small businesses, and our local economies. Dramatic shifts in the CFPB’s philosophy and approach with each change in presidential administration make it difficult for lenders and small businesses to plan for the future.”

The bill has been referred to the House Financial Services Committee.