House Republicans take steps to rein in CFPB and Dodd-Frank
Last week, the House Financial Services committee passed two separate bills addressing significant legislation impacting mortgage lenders, banks, and real estate agents.
The first, introduced by Rep. Andy Barr (R-KY) called the Taking Account of Bureaucrats Spending (TABS) Act of 2015, H.R. 1486, passed by a vote of 33-20. This bill would bring the Consumer Financial Protection Bureau (CFPB) under Congressional oversight by bringing its budget under the Congressional appropriations process. Currently, the CFPB receives funding directly from the Federal Reserve.
According to House Financial Services Committee Chairman Jeb Hensarling (R-TX), “Every government agency should be accountable to the elected representatives of ‘We the People’ and the CFPB should not be an exception to that rule.” The CFPB has created deep uncertainty within financial markets as their power to regulate and enforce rules has largely gone unchecked by Congress.
The second bill, H.R. 4894 – To repeal title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act, was introduced by Rep. Lynn Westmoreland (R-GA) and passed by a vote of 34-22. This bill would repeal the federal government’s orderly liquidation authority used to liquidate large financial institutions. This vote comes on the heels of a FDIC and Federal Reserve report which determined five of the country’s biggest banks are still too big to fail.
Both of these bills represent significant steps in the right direction. The CFPB must be held accountable for their actions that over regulate lenders and restrict access to credit. Taxpayers should not be on the hook to bail out large banks. Congress should continue working to fully repeal Dodd-Frank and get rid of the CFPB.