U.S. Rep. Steve Stivers (R-OH) has renewed his call for establishing an independent inspector general position for the Consumer Financial Protection Bureau (CFPB) in order to enhance its transparency and oversight.
CFPB currently shares an inspector general with the Federal Reserve, and the CFPB receives funding through the Federal Reserve rather than the congressional appropriations process.
Stivers recently reintroduced the Bureau of Consumer Financial Protection-Inspector General Act. The bill would amend the Inspector General Act of 1978 to create a CFPB inspector general position that would be appointed by the president and confirmed by the Senate.
“Federal agencies must be held accountable to the American people,” Stivers said. “This legislation will allow for increased oversight of an agency that has been given broad authority — and often overreaches that authority. It is important that we take the necessary steps to ensure the CFPB is able to fulfill its role in protecting consumers, while being held accountable.”
The CFPB was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act and oversees the federal financial laws that protect consumers from unfair practices by companies.
Stivers, a member of the House Financial Services Committee, also was a strong supporter of the Financial CHOICE Act, which passed the full House in June. The Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs, or CHOICE Act, made a series of changes to Dodd-Frank regulations that restricted access to loans for small businesses and consumers.
Included in the CHOICE Act is a provision based on a bill introduced by Stivers in the 114th Congress, the SAFE Transitional Licensing Act. That bill changed the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act to require states to issue transitional licenses to individuals who were employed by a financial institution and are a registered loan originator. “This allows loan originators to have a smooth employment transition between bank and non-bank entities,” Stivers wrote in an opinion piece on the CHOICE Act in May.