House Bill Recommends Changes to CFPB Leadership Structure
April 12, 2011 A bill introduced in the House of Representatives would change the leadership of the newly created Consumer Financial Protection Bureau (CFPB) from a Director to a five-person commission.
H.R. 1121, the Responsible Consumer Financial Protection Regulations Act of 2011, introduced by House Financial Services Chairman Spencer Bachus (R-AL) would replace the CFPB’s Director with a commission comprised of five Presidential appointees. The commission members would face Senate confirmation and serve five year terms.
The bill would amend Title X of the Dodd-Frank Act to shift the CFPB Director’s authority and responsibilities to a five-person commission. A permanent director has not yet been named, but Elizabeth Warren, as a special advisor to the President, continues to lead the “standing up” of the agency. As directed by the Dodd-Frank Act, the agency can start exercising its authorities on July 21.
On April 6, the House Financial Services Subcommittee on Financial Institutions & Consumer Credit held a hearing to address this bill and other legislative proposals to improve the structure of the CFPB. The hearing’s two credit union executive witnesses expressed concern about the possibility of additional regulatory burden with the addition of the CFPB examinations. Generally, the hearing panel agreed with the proposal for a five-person commission to lead the CFPB.
Recently, NASCUS submitted a statement on behalf of state regulators for the March 16 Subcommittee on Financial Institutions & Consumer Credit hearing record on “Oversight of the Consumer Financial Protection Bureau.” To view the statement, click here.