CU Issues Raised During HFSC Semiannual CFPB Review

A number of issues important to credit unions were raised during Thursday's House Financial Services Committee hearing with CFPB Director Kathy Kraninger including reforms to the Bureau, its consumer complaint database and the Military Lending Act (MLA).

Committee Ranking Member Patrick McHenry (R-NC) said during the hearing that the Bureau should be subject to the congressional appropriations process and its structure should be reformed from a single director to panel of commissioners, two reforms CUNA and the state leagues have been advocating for several years.

Kraninger was also asked by committee members about the Bureau's consumer complaint database and the MLA. CUNA has argued that unverified complaint information should not be made public in order to reduce the risk of reputational harm.

On MLA, Kraninger in January asked Congress to pursue legislation to give the Bureau clear authority to supervise institutions for compliance with the MLA. Former CFPB Acting Director Mick Mulvaney said the Bureau would stop examining lenders for compliance because the CFPB does not have oversight authority.

Whether the Bureau's approach to MLA oversight will change in the meantime is not clear. NCUA's 2019 supervisory priorities do include examining for MLA compliance.