Last week, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra testified before the Senate Banking and House Financial Services Committees in separate oversight hearings. The discussions spanned a variety of topics, including the scope of the CFPB’s rulemaking and regulatory authorities, as well as the emergence of large technology companies in the consumer finance space.
In the Senate hearing, Democratic members voiced concerns about the heightened risk of foreclosures and evictions following the expiration of federal assistance. Chairman Sherrod Brown (D-OH) inquired about the potential risks posed by inaccurate consumer reporting in the tenant screening process. The Director stated that the agency plans to conduct oversight of illicit mortgage servicing practices, such as housing discrimination, to prevent further loss in homeownership. Fellow Democratic member, Senator Mark Warner (D-VA) asked for clarification on the timeline for the Qualified Mortgage (QM) rule with the Director responding that although the rule has already been implemented, the compliance date was extended to October 2022.
On the Republican side, several Senators inquired about the agency’s Dodd-Frank Section 1071 (1071) small business lending reporting rulemaking. Sen. Bill Hagerty (R-TN) and Sen. Jerry Moran (R-KS) expressed concern that the 1071 rulemaking would impose burdens on small businesses with Director Chopra responding that the Bureau currently has an open comment period which small businesses may use to provide feedback. Sen. Thom Tillis (R-NC) requested the agency prioritize the prevention of racial profiling that may arise from the 1071 rule.
Director Chopra additionally outlined many of his priorities for the agency before House members in the lower chamber’s oversight hearing, specifically discussing the need to impose enforcement actions against financial institutions that are repeat offenders of violations and focus more on enforcement for larger market participants. The Director discussed leniency for companies that self-report violations and with regards to enforcement, stating that regulatory guidelines and rules set through enforcement should be “easy to follow and easy to enforce.”
In addition to cryptocurrency, which was discussed at length in both hearings, the House hearing touched on the agency’s Dodd-Frank Section 1033 rulemaking concerning consumer’ right to access information about their financial accounts. Director Chopra expressed a desire to promote competition, but also ensure that banks and nonbanks face similar regulatory rules and standards.
Chopra Testifies Before House, Senate Panels
Nov 01, 2021
Last week, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra testified before the Senate Banking and House Financial Services Committees in separate oversight hearings. The discussions spanned a variety of topics, including… Read the rest
2021 Investors Conference Registration Open
Nov 01, 2021
The AFSA Credit Summit for Fixed Income Investors is back for 2021 and coming right to your home or office.
Join finance industry executives, debt issuers, and investors virtually on Tuesday, December 7 for a fast-paced, single day conference… Read the rest
FTC Issues New Safeguards Rule
Oct 29, 2021
The Federal Trade Commission (FTC) has issued its final Safeguards Rule, as AFSA mentioned was likely at our Annual Meeting this past week.
The Safeguards Rule was mandated by Congress under the 1999 Gramm-Leach-Bliley Act.
- The first rule
New Decision in the Hunstein Case: Our Work Continues
Oct 28, 2021
On October 28, 2021, we received a new decision in the Hunstein case. Unfortunately, the decision portends more work ahead for industry.
As a brief recap, the Hunstein case involves an individual claim against a debt collector. The allegation… Read the rest
About That Consumer Reports Story
Oct 28, 2021
A few folks may have seen the Consumer Reports article regarding consumer lending in the vehicle finance space. The American Financial Services Association provided the publication with extensive comments and materials that, were they… Read the rest
Registration Open | 2021 Virtual Fixed Income Investors Summit
Oct 26, 2021
The AFSA Credit Summit for Fixed Income Investors is back for 2021 and coming right to your home or office.
Join finance industry executives, debt issuers, and investors virtually on Tuesday, December 7 for a fast-paced, single day conference… Read the rest
AFSA Honors Jones, Locke for Service to Industry
Oct 26, 2021
AFSA created the Distinguished Service Award (DSA) in 1941 to recognize individuals who contribute to the growth and advancement of the financial services industry and our association.
Today, at the 2021 Annual Meeting at the Mandarin Oriental… Read the rest
We’re Waiting for You in Washington
Oct 24, 2021
The 2021 AFSA Annual Meeting kicks off next week in Washington, DC and, whether you’re joining us in-person or virtually, we can’t wait to see you. AFSA has planned some thought-provoking and inspirational sessions that we think |
AFSA Outlines Priorities in NDAA
Oct 20, 2021
AFSA sent a letter to the Chairmen and Ranking Members of the House and Senate Armed Services Committee regarding the National Defense Authorization Act (NDAA) legislation for 2022.
The NDAA, which must pass Congress every year, is currently… Read the rest
AFSA on Interchange in WI
Oct 20, 2021
On Wednesday, October 20, AFSA’s State Government Affairs (SGA) team partnered with other trade associations sent a joint letter to the Wisconsin legislature regarding AB 587 and SB 572, which prohibit interchange on the sales tax portion… Read the rest