Financial Services Subcommittee Holds Second CFPB Hearing
The Financial Institutions and Consumer Credit Subcommittee of the House Financial Services Committee
discussed two pieces of legislation proposing reforms to the structure of the CFPB
Rep. Shelly Moore Capito, subcommittee chairman of The Financial Institutions and Consumer Credit
Subcommittee of the House Financial Services Committee, held a hearing Wednesday, April 6, for the
purpose of reviewing ways to make the Consumer Financial Protection Bureau (CFPB) more accountable
The subcommittee discussed two legislative proposals, which address issues with the CFPB.
The first legislative proposal that was discussed was The Responsible Consumer Financial Protection
Regulations Act. This legislation was introduced by Financial Services Chairman Spencer Bachus on
The bill proposes replacing the director of the CFPB with a five-member, bi-partisan commission rather
than a single director of the CFPB. This bill creating the commission is identical to a provision of the
regulatory reform bill that passed the House last year but was later dropped by the Democratic
conferees to the Dodd-Frank Act.
Chairman Bachus stated, “Having the CFPB led by a bipartisan commission received strong support from
Republicans and Democrats in the last Congress because it makes sense. The CFPB will do a better job
carrying out its mission if it is led by a bipartisan commission rather than a single director.”
The second legislative proposal that was discussed was the Consumer Financial Safety and Soundness
Improvement Act, which was introduced by Representative Sean Duffy on April 1. This legislation
proposal restructures the Financial Stability Oversight Council’s review process of CFPB rules.
Currently, the Financial Stability Oversight Council (FSOC) has the ability to review rulemaking by the
CFPB, but must meet stringent requirements to overturn any CFPB rulemaking. There are strict
standards the FSOC must meet under current law to overturn a rule including; that two-thirds of FSOC
members must approve; the FSOC must find the rule endangers the stability of the entire financial
system; and the FSOC has only 90 days to review the proposed rule; and a review petition must be filed
within 10 days of publication in the Federal Register of the draft rule.
Rep. Duffy’s proposed legislation would provide more checks and balances and limit unfettered
authority of a single director.
ACA’s federal government affairs staff continues to engage the committee and the U.S. Treasury
Department to provide input on these and other proposals to improve the current construct of the