The House Financial Services Committee approved several bipartisan bills they say are designed to potentially protect consumers, reform the Consumer Financial Protection Bureau and cut regulations.
Among the bills are measures to reform the CFPB leadership, appoint an inspector general to monitor the CFPB and examine and assess the capital requirements for federal and state credit unions.
“Consumers are understandably concerned about our economy. We remain stuck in the worst recovery of the last 70 years. At the same time, they’re concerned that Washington is taking away their choices and raising many of their costs, said Financial Services Committee Chairman Jeb Hensarling, R-Texas. “Our committee has the privilege — and responsibility — to fight for them.
“Because every American — regardless of which side of the tracks they grew up on, regardless of how humble their circumstances may be — has the right to shape their own destiny; has the right to economic freedom and choice; and has the right to expect that Congress will work to build a healthier economy with more opportunities. Our committee has already guided 41 bills through the House this year, but we still have a lot of work to do,” Hensarling said.
Among the bills passed were the following:
H.R. 414, the Burdensome Data Collection Relief Act, sponsored by Rep. Bill Huizenga, R-Mich. H.R. 414 repeals what Republicans call burdensome requirements of the Dodd-Frank Act for publicly traded companies so they can instead focus resources on job creation and economic growth. It passed the committee 32-25.
H.R. 957, the Bureau of Consumer Financial Protection-Inspector General Reform Act of 2015, sponsored by Rep. Steve Stivers, R-Ohio. H.R. 957 ensures greater accountability at the Consumer Financial Protection Bureau by creating an independent Inspector General for the CFPB who is, nominated by the President and confirmed by the Senate. It passed the committee 56-3.
H.R. 1090, the Retail Investor Protection Act, sponsored by Rep. Ann Wagner, R-Mo. H.R. 1090 begins to correct the Department of Labor’s proposed fiduciary rule that will raise costs, restrict choice and reduce access to investment advice for lower and middle income families seeking financial independence. It passed the committee 34-25.
H.R. 1266, the Financial Product Safety Commission Act of 2015 sponsored Rep. Randy Neugebauer, R-Tex. H.R. 1266 removes the CFPB from within the Federal Reserve System and re-establishes it as a stand-alone agency that is governed by a five-member, bipartisan commission. All authorities and powers of the CFPB remain unchanged. H.R. 1266 passed the committee 35-24.
- H.R. 2769, the Risk-Based Capital Study Act of 2015, sponsored by Rep. Stephen Fincher, R-Tenn. H.R. 2769 requires the National Credit Union Administration to conduct a study of the appropriate capital requirements for Federal and State credit unions before new rules take effect. H.R. 2769 passed the committee 50-9.
Richard Hunt, president and CEO of the Consumer Bankers Association, said he think the industry would especially welcome the bill to restructure the CPFB leadership.
“I commend Chairman Neugebauer, the House Republicans, and Reps. Kyrsten Sinema and David Scott for coming together to strengthen the governance structure of the CFPB. A bipartisan commission at the helm will provide a balanced, fair, deliberative approach to supervision, regulation, and enforcement. Most importantly, it offers a stable form of leadership that will preserve the agency’s role regardless of which political party is in the White House,” said CBA’s President and CEO Richard Hunt.
National Association of Federal Credit Unions Vice President of Legislative Affairs Brad Thaler said he he applauded the bill that would require NCUA to “stop and study” its risk-based capital proposal.
"We appreciate Chairman Jeb Hensarling’s leadership efforts to advance regulatory relief for community financial institutions, including credit unions,” said Thaler. “The vote today is a step in the right direction to protect credit unions from the unnecessary and costly consequences of NCUA’s second risk-based capital proposal. We look forward to continuing our work with Congress to advance regulatory relief for credit unions.”