ACA Signs on to Support Legislation to Change CFPB Leadership Structure

The legislation, reintroduced in the 116th Congress, would replace the single-director leadership structure at the Consumer Financial Protection Bureau with a five-member commission.

6/18/2020 8:00 AM

CFPBNewsAdvocacy
ACA Signs on to Support Legislation to Change CFPB Leadership Structure

ACA International and additional industry trades, on behalf of financial service providers, issued a letter of support for legislation to reform the Consumer Financial Protection Bureau’s leadership structure.

U.S. Sen. Deb Fischer, R-Neb., reintroduced the Financial Product Safety Commission Act of 2020, S. 3990, June 17.

“The undersigned trade associations that represent financial service providers and serve America’s consumers, write to express our strong support for the Financial Product Safety Commission Act of 2020. This legislation would ensure the CFPB’s political independence by replacing the single director structure with a five-person, bipartisan commission, as originally intended by the U.S. House of Representatives when it first passed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010,” the letter to Sen. Fischer states.

The legislation is a companion bill to H.R. 6116, the Consumer Financial Protection Commission Act of 2020, sponsored by U.S. Rep. Blaine Luetkemeyer, R-Mo.

ACA and a coalition of organizations also issued a letter of support to Luetkemeyer’s office and the House Financial Services Committee from organizations in March 2020.

Luetkemeyer, ranking member of the House Subcommittee on Consumer Protection and Financial Institutions, introduced his bill while the U.S. Supreme Court started debate on a case also focused on the bureau’s leadership structure, Seila Law v. Consumer Financial Protection Bureau. Republicans on the House Financial Services Committee, where Luetkemeyer also serves, are co-sponsors of the bill, ACA previously reported.

Sen. Fischer’s office also noted the importance of the Seila Law case, which could have a decision from the Supreme Court this month, in her statement on the legislation.

“I have long advocated for reforming the CFPB to increase its transparency and accountability. With the Supreme Court set to issue an opinion this month on the constitutionality of the CFPB’s single director, my bill offers a common-sense solution for reforming the bureau. A bipartisan, multi-member commission would help ensure good governance, prevent rash decision making, and result in more economic certainty for Americans starting businesses and providing for their families,” Fischer said.

The Financial Product Safety Commission Act of 2020 would:

  • Replace the Consumer Financial Protection Bureau with a bipartisan Financial Product Safety Commission of five individuals (all appointed by the President, confirmed by the Senate).  
  • Have commissioners each serve staggered five-year terms, and no more than three commissioners could be from the same political party.
  • Create a chair of the commission position (to fulfill administrative and other duties), which shall initially be the individual serving as director of the CFPB on the day before the date of enactment of this legislation. This person would serve as chair until the president has appointed all five members of the commission and appoints one member to serve as the subsequent chair of the commission.

ACA and the joint trades’ letter continues: “The current single director structure, as we witnessed in the transition in CFPB leadership from the Obama Administration to the Trump Administration, leads to significant uncertainty within the financial services industry. 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. The financial services marketplace thrives in a stable regulatory environment. When regulatory stability is eroded by changing political dynamics, the consumer suffers from financial institutions’ inability to rely upon a consistent regulatory environment.”

S. 3990 was referred to the Senate Committee on Banking, Housing and Urban Affairs.

ACA International continues to support legislation to implement a commission leadership structure at the CFPB and increase its accountability and transparency.

The trades signing on to the letter to Sen. Fischer include:

ACA International, American Bankers Association, American Escrow Association, American Financial Services Association, American Land Title Association, Community Mortgage Lenders of America, Consumer Bankers Association, Consumer Data Industry Association, Credit Union National Association, Independent Community Bankers of America, Mortgage Bankers Association, National Association of Federally-Insured Credit Unions, National Association of Realtors, Real Estate Services Providers Council, Inc (RESPO), Small Business & Entrepreneurship Council, The U.S. Chamber of Commerce.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

ACA Signs on to Support Legislation to Change CFPB Leadership Structure

ACA International and additional industry trades, on behalf of financial service providers, issued a letter of support for legislation to reform the Consumer Financial Protection Bureau’s leadership structure.

U.S. Sen. Deb Fischer, R-Neb., reintroduced the Financial Product Safety Commission Act of 2020, S. 3990, June 17.

“The undersigned trade associations that represent financial service providers and serve America’s consumers, write to express our strong support for the Financial Product Safety Commission Act of 2020. This legislation would ensure the CFPB’s political independence by replacing the single director structure with a five-person, bipartisan commission, as originally intended by the U.S. House of Representatives when it first passed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010,” the letter to Sen. Fischer states.

The legislation is a companion bill to H.R. 6116, the Consumer Financial Protection Commission Act of 2020, sponsored by U.S. Rep. Blaine Luetkemeyer, R-Mo.

ACA and a coalition of organizations also issued a letter of support to Luetkemeyer’s office and the House Financial Services Committee from organizations in March 2020.

Luetkemeyer, ranking member of the House Subcommittee on Consumer Protection and Financial Institutions, introduced his bill while the U.S. Supreme Court started debate on a case also focused on the bureau’s leadership structure, Seila Law v. Consumer Financial Protection Bureau. Republicans on the House Financial Services Committee, where Luetkemeyer also serves, are co-sponsors of the bill, ACA previously reported.

Sen. Fischer’s office also noted the importance of the Seila Law case, which could have a decision from the Supreme Court this month, in her statement on the legislation.

“I have long advocated for reforming the CFPB to increase its transparency and accountability. With the Supreme Court set to issue an opinion this month on the constitutionality of the CFPB’s single director, my bill offers a common-sense solution for reforming the bureau. A bipartisan, multi-member commission would help ensure good governance, prevent rash decision making, and result in more economic certainty for Americans starting businesses and providing for their families,” Fischer said.

The Financial Product Safety Commission Act of 2020 would:

  • Replace the Consumer Financial Protection Bureau with a bipartisan Financial Product Safety Commission of five individuals (all appointed by the President, confirmed by the Senate).  
  • Have commissioners each serve staggered five-year terms, and no more than three commissioners could be from the same political party.
  • Create a chair of the commission position (to fulfill administrative and other duties), which shall initially be the individual serving as director of the CFPB on the day before the date of enactment of this legislation. This person would serve as chair until the president has appointed all five members of the commission and appoints one member to serve as the subsequent chair of the commission.

ACA and the joint trades’ letter continues: “The current single director structure, as we witnessed in the transition in CFPB leadership from the Obama Administration to the Trump Administration, leads to significant uncertainty within the financial services industry. 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. The financial services marketplace thrives in a stable regulatory environment. When regulatory stability is eroded by changing political dynamics, the consumer suffers from financial institutions’ inability to rely upon a consistent regulatory environment.”

S. 3990 was referred to the Senate Committee on Banking, Housing and Urban Affairs.

ACA International continues to support legislation to implement a commission leadership structure at the CFPB and increase its accountability and transparency.

The trades signing on to the letter to Sen. Fischer include:

ACA International, American Bankers Association, American Escrow Association, American Financial Services Association, American Land Title Association, Community Mortgage Lenders of America, Consumer Bankers Association, Consumer Data Industry Association, Credit Union National Association, Independent Community Bankers of America, Mortgage Bankers Association, National Association of Federally-Insured Credit Unions, National Association of Realtors, Real Estate Services Providers Council, Inc (RESPO), Small Business & Entrepreneurship Council, The U.S. Chamber of Commerce.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

Loading...

Loading...

Scroll to Top