CFPB Director To Testify Before House Financial Services Committee

CFPB director Richard Cordray will appear before the House Financial Commitee to address reports decrying the bureau’s activities.

The committee issued two reports detailing the bureau’s attempt to regulate auto dealers despite being prohibited to do so. The reports also exposed the CFPB’s flawed distribution of a $80 million settlement without doing a due diligence on the claimants leading in alleged racial discrimination. The documents revealed, some white borrowers received settlement checks over Asians, African-Americans and Hispanics.

“The CFPB undoubtedly remains the single most powerful and least accountable Federal agency in all of Washington,” said Chairman of the committee Jeb Hensarling (R-TX). “When it comes to the credit cards, auto loans and mortgages of hardworking taxpayers, the CFPB has unbridled, discretionary power not only to make those less available and more expensive, but to absolutely take them away.”

Since Cordray’s last appearance before in September 2015, the Bureau has has proposed regulations that compromise on the consumer’s’ right to access small dollar, short-term loans. The Qualified Mortgage rule that addresses few of the actual risks associated with mortgage lending led some community financial institutions to downsize or shut down their mortgage operations.