Appropriators consider changes for BCFP

May 24, 2018 -- Several provisions for reforming the Bureau of Consumer Financial Protection (BCFP, formerly known as the CFPB) reflecting proposals made by the acting director of the agency, and delaying “risk-based capital” rules for credit unions, are included in a financial services appropriations bill marked up Thursday.

The fiscal year 2019 financial services and general government appropriations bill includes at least three items to reform the consumer bureau: funding the agency through the appropriations process, establishing an independent inspector general for the agency and establishing a procedure for approving major rules issued by the agency (the proposal also includes a provision for congressional disapproval of non-major rules). It was marked up by the financial services and general government subcommittee.

The bill also delays, by two years (to 2021), NCUA’s “risk-based capital” rule, now set to take effect in 2019.

In April, BCFP Acting Director Mick Mulvaney told Congress in the agency’s semiannual report that he recommended changes to the law creating the bureau to “establish meaningful accountability” for it. The appropriations packaged considered this week included at least three of the recommendations he made. In addition, this spring he recommended that the bureau’s director should answer to the president “in the exercise of executive authority.”

“The bill brings the rogue, unaccountable Consumer Financial Protection Bureau under the appropriations process, which will finally subject it to congressional oversight and accountability,” said financial services subcommittee Chairman Tom Graves (R-Ga.) in a release.

The proposal now heads to the full Appropriations Committee for review.

Appropriations Committee Releases Fiscal Year 2019 Financial Services Bill