CFPB Director to Appear Before HFSC Next Week

Consumer Financial Protection Bureau (CFPB) Director Richard Cordray will testify before the House Financial Services Committee (HFSC) next week, according to a press release from committee chairman Rep. Jeb Hensarling (R-TX).

“The CFPB undoubtedly remains the single most powerful and least accountable Federal agency in all of Washington," the chairman noted in a statement. "When it comes to the credit cards, auto loans and mortgages of hardworking taxpayers, the CFPB has unbridled, discretionary power not only to make those less available and more expensive, but to absolutely take them away. Consequently, Americans are losing both their financial independence and the protection of the rule of law.” 

The release also referenced the committee’s two reports on vehicle financing and its impending proposed rule on small-dollar credit. Of the proposed small-dollar rule, the release said, “The Bureau’s foray into regulation of small dollar, short-term loans follows its regulation of the mortgage market by way of its Qualified Mortgage (QM) rule. The rule, which addresses few of the actual risks associated with mortgage lending, has harmed consumer access and choice when it comes to mortgages by forcing many community financial institutions to downsize or shut down their mortgage operations.”

The hearing will be held on March 16 at 10:00 a.m. A livestream of the hearing will be available at the HFSC website.