Savitt: CFPB curtailing bill 'a long time coming'

by Ryan Smith03 Mar 2014
A recently passed bill that would curtail the power of the Consumer Financial Protection Bureau has been “a long time coming,” said the head of an industry group.

Marc Savitt, president of the National Association of Independent Housing Professionals, said the bill, which passed in the House on Thursday, would be an important step in bringing accountability to the CFPB.

The bill would replace the director of the CFPB with a bipartisan commission, put CFPB employees on a civil service pay scale, and require the agency to receive its funding through the congressional appropriations process. Currently, the CFPB is funded by the Federal Reserve.

“I think it’s a long time coming,” Savitt said. “No person – and this isn’t anything against (CFPB Director) Richard Cordray – but no one person should have that much power with no checks and balances, and that’s exactly what we have here.”

The bill passed the House largely along party lines. It was opposed by most Democrats, who say the CFPB’s current setup is vital to the agency’s political independence. The bill is unlikely to pass the Democrat-controlled Senate, and the White House has already intimated that President Obama would veto the bill if it landed on his desk.

Still, Savitt said, the bill’s passage in the House served a purpose.

“You’re still getting the message out,” he said. “And bills take a long time to get through. What may not be viable now may be viable a couple of years from now.”
 

COMMENTS

  • by 2Bsquare | 3/3/2014 11:48:29 AM

    In total amazement that Dodd Frank will cost the tax payer more money than Obamacare, yet it is just starting to get notice.

  • by GoBigDog | 3/3/2014 11:54:33 AM

    @2Bsquare - You're right, I've never heard that Dodd Frank will cost more than Obamacare. Do you have any links for more information?

  • by Cheryl M | 3/3/2014 12:04:20 PM

    "receive its funding through the congressional appropriations process." LOL and that's worked out so well for the american people...Congress getting involved. So much for consumer protection! This bill is incredible, let's go back to 2008 where everyone was screaming "consumers need protection" "financial industry needs reform".....well here we have it at the CFPB finally an entity that REALLY does protect consumers in the financial arena now they want to do away with it. Why is it Congress wants to continually screw up consumer protection we've never had it before. The FTC couldn't handle all of it, our local AG offices didn't know what do to with it and now congress wants to help out...so far all they have accomplished is costing the consumer more money. Again, I 've been through the CFPB site dozens of time, they do have accountability. Lawyers who know consumer federal laws, judges, etc...who know more than any of these congressmen and women. These are already federal laws they've been in place for decades the CFPB is only now supporting them for consumers.

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