House Passes CFPB Reform Legislation
On February 27, the U.S. House of Representatives passed H.R. 3193, a bill that would convert the CFPB into an independent Financial Product Safety Commission led by a five-member board and subject to annual appropriations. The bill aggregates five bills the House Financial Services Committee approved last November. The bill also would, among other things, establish new rulemaking procedures for the Commission and amend its data collection authority and processes. Rep. Gary Peters (D-MI) led the effort on behalf of the House Financial Services Committee minority to unify Democrats in opposition to the bill. His “dear colleague” letter urged fellow Democrats to “stand with consumers and oppose this flawed, unnecessary legislation to undo progress we’ve made since reforming Wall Street.” Ten Democrats joined 222 Republicans in the 232-182 vote that advanced the legislation. The Democratic-controlled Senate is unlikely to take up the measure, however.