Newsroom
Senate Banking Committee hears from CFPB Director Chopra on priorities
CFPB Director Rohit Chopra appeared before the Senate Banking Committee Thursday to review updates on the bureau as part of a semi-annual report to Congress. Ahead of the hearing, NAFCU Vice President of Legislative Affairs Brad Thaler wrote to the committee to stress NAFCU's thoughts on current issues and pledged to continue to work with both the committee and the bureau.
During the hearing, lawmakers covered many topics similar to Wednesday's House Financial Services Committee's hearing to conduct oversight of the CFPB. The hearing, where Chopra was present as a witness, was his first Congressional appearance since becoming CFPB director (view a full recap here).
On data privacy, Chopra was asked about the CFPB's role in regulating payment platforms with big tech companies. In response, he expressed a need for a fair competitive payment system and touched on the bureau's enforcement of the Electronic Funds Transfer Act and Gramm-Leach-Bliley Act (GLBA).
Regarding GLBA privacy positions, Chopra called them “outdated and almost useless,” and noted he hopes this is an area he can fix; however, he explained that the bureau will continue to enforce them.
Recently, the bureau issued a series of orders to collect information on the business practices of large technology companies operating payments systems in the U.S. with the goal of gaining a better understanding of how these firms use personal payments data and manage data access to users to ensure adequate consumer protection. The association has continuously advocated for a national privacy and data security standard so credit unions are not subject to multiple privacy frameworks and has a created a set of data privacy principles to be included in any such legislation.
In addition, when asked about the Bureau's proposed rule to implement changes to Section 1071 of the Dodd-Frank Act, Chopra encouraged those with concerns to participate in the comment period.
NAFCU recently wrote to Chopra directly to address the Bureau's proposal and its likely effects as related to the proposal currently included in the Build Back Better Act to authorize the Small Business Administration (SBA) to establish a direct 7(a) lending program. Credit unions can submit comments on the proposal through NAFCU's Regulatory Alert on the topic.
On the topic of foreclosure moratoriums, Chopra stated he has directed CFPB staff to monitor the mortgage market and foreclosures, and as of late they have reported low foreclosure rates. Chopra also expressed a desire to focus on the "refinancing space."
NAFCU will continue to work closely with the bureau to ensure credit unions' concerns are considered in its regulatory efforts.