Yesterday afternoon, the House of Representatives, by a 231-190 partisan vote, passed H.J. Res. 111 which provides for Congressional disapproval under the Congressional Review Act (CRA) of the CFPB’s final arbitration rule. The rule was published on July 19, 2017 in the Federal Register.
Under the CRA, to override the arbitration rule, both the House and Senate must pass a resolution of disapproval within 60 legislative days by a simple majority vote. While a disapproval resolution has already been introduced in the Senate, a vote is not expected to take place until September. Several Republican Senators are reported to be undecided on how they will vote. Assuming all Democratic Senators oppose the resolution as expected, Republicans can only lose two votes and still pass the resolution.
The White House also issued a “Statement of Administration Policy” setting forth its support for H.J. Res. 111. The Statement describes the resolution as consistent with Executive Order 13772, Core Principles for Regulating the United States Financial System, because it “would protect consumer choices by eliminating a costly and burdensome regulation and reining in the bureaucracy and inadvisable regulatory actions of the CFPB.” The Statement indicates that “[i]f H.J. Res. 111 were presented to the President in its current form, his advisors would recommend that he sign it into law.”