House Republicans are making another attempt to replace the CFPB’s director with a five-member commission. A similar attempt passed the House early last year but did not reach a vote in the Senate.
H.R. 1266, introduced earlier this week by Republican Congressman Randy Neugebauer, is entitled the “Financial Product Safety Commission Act of 2015.” It would rename the CFPB as the “Financial Product Safety Commission” and replace the CFPB’s director with a five-member commission. Members would be appointed by the President and subject to Senate confirmation. They would serve five-year terms, with the terms to be staggered so that initial members would serve terms of one to five years, and no more than 3 members could belong to the same political party. The committee’s chair would also be appointed by the President.
Eight leading financial services trade group have sent a letter to Mr. Neugebauer expressing their support for the bill. The trade groups consist of the American Bankers Association, American Financial Services Association, Consumer Bankers Association, Credit Union National Association, Financial Services Roundtable, Independent Community Bankers of America, National Association of Federal Credit Unions, and U.S. Chamber of Commerce.
While the fall elections giving the Republicans control of the Senate increase the likelihood of H.R. 1266 passing the Senate, a veto by President Obama can be expected.