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CFPB Director Kathy Kraninger today is set to testify in front of the House Financial Services Committee as part of the Committee's semi-annual review of the bureau. Ahead of the hearing, NAFCU Vice President of Legislative Affairs Brad Thaler reiterated the association's appreciation of the committee's ongoing oversight of the CFPB and efforts to promote financial inclusion and consumer protection.

"NAFCU strongly supports the Committee’s ongoing work to promote diversity and inclusion in financial services, and we recognize that the CFPB has an important role to play in this effort," wrote Thaler, sharing the association's support of the Financial Inclusion in Banking Act of 2019, H.R. 4067, which would require the CFPB's Office of Community Affairs to research how to increase financial inclusion for underserved communities.

In the letter, Thaler also shared the association's viewpoint on some areas where the structure and operations of the bureau may be enhanced.

"Since the enactment of the Dodd-Frank Act, over 1,500 federally-insured credit unions have been forced to close their doors or merge with other credit unions, which amounts to over 20 percent of the industry," he noted. "A large majority of those credit unions that closed or merged were small in asset size, and as such, could not afford to comply with all the rules promulgated by the CFPB.

"Although the CFPB already provides for some exemptions based on an entity’s asset size, NAFCU strongly believes that the CFPB can do more, such as increase the exemption threshold, or consider exemptions based on an institution's characteristics and activities," he added.

During NAFCU's Congressional Caucus, Kraninger emphasized the need for cost benefit analysis when it comes to solid policymaking, as well as the need to preserve consumer choice in policies and rulemakings.

The bureau is currently considering ways to reduce the burden of Home Mortgage Disclosure Act compliance while ensuring data collection and reporting meet the law's statutory objectives to eliminate discriminatory lending.

Additionally, Thaler reiterated the association's belief that the leadership of the CFPB should be changed from a single director to a five-person bipartisan commission.

"NAFCU has long held the position that, given the broad authority and awesome responsibility vested in the CFPB, a five-person commission has distinct consumer benefits over a single director," wrote Thaler. "Regardless of how qualified one person may be, a commission would allow multiple perspectives and robust discussions of consumer protection issues throughout the decision making process."

Last month, following years of lawsuits and calls from various stakeholders, the Trump administration determined that the bureau's current structure is unconstitutional. As a result, Kraninger notified congressional leaders that the bureau will no longer defend its structure in lower-level cases.

Kraninger is also slated to appear before the Senate Banking Committee tomorrow. NAFCU will update credit unions via NAFCU Today.