Several industry associations, including the American Land Title Association, American Escrow Association, Mortgage Bankers Association and Real Estate Services Providers Council, wrote a letter to members of Congress, voicing their support for H.R. 5266, the Financial Product Safety Commission Act of 2018, which would establish a five-person, bipartisan commission to replace the current sole director governance structure of the Consumer Financial Protection Bureau.
“A Senate confirmed, bipartisan commission will provide a balanced and deliberative approach to supervision, regulation, and enforcement by encouraging input from all stakeholders,” the associations wrote. “The current single director structure leads to uncertainty as we have witnessed in the recent transition in CFPB leadership from the Obama Administration to the Trump Administration. This uncertainty is not only borne by financial institutions providing significant lending services, but it negatively impacts America’s consumers, small businesses, and our local economies. Dramatic shifts in the CFPB’s philosophy and approach with each change in presidential administration make it difficult for lenders and small businesses to plan for the future.”
They noted that a Morning Consult poll showed that registered voters in eight battleground states favored a commission versus a sole director three to one. They also pointed out that “it is the traditional structure for a financial services regulator as this leadership model provides some moderation and stability regardless of who is in the White House.”
“Members from both parties have long supported legislation to replace the single director model with a commission,” the associations wrote. “In fact, bipartisan legislation establishing a CFPB commission has passed the House Financial Services Committee six times and passed the U.S. House of Representatives four times, with Democrats and Republicans voting in favor. It is important to note that when Dodd-Frank passed the House in 2009, under the leadership of then-House Financial Services Committee Chairman Barney Frank (D-MA), it included a provision that would establish a fivemember commission at the Bureau. Moreover, last Congress, the House Financial Services Committee passed for the first time on a bipartisan basis, legislation that would establish a bipartisan, five-member commission at the CFPB.”