The U.S. House Committee on Financial Services considered testimony from CFPB Director Kathleen L. Kraninger on the Bureau's Spring 2020 Semi-Annual Report.
Testimony
Ms. Kraninger submitted to the House the same testimony that she had previously submitted to the U.S. Senate Committee on Banking, Housing and Urban Affairs, identifying four key areas of focus for the CFPB: (i) providing financial education resources, (ii) implementing clear rules that encourage "competition, increase transparency, and preserve fair markets," (iii) ensuring a "culture of compliance" and (iv) following a consistent enforcement regime.
Ms. Kraninger noted the CFPB's efforts to address discrimination. Specifically, she stated that the CFPB referred four enforcement matters to the DOJ regarding discrimination under the Equal Credit Opportunity (or "ECOA") Act Section 706(g). These include "redlining in mortgage origination based on race and/or national origin."
She also noted the heightened number of complaints received by the CFPB regarding the struggle for consumers to make mortgage payments. She stated that, in response to the complaints, the CFPB was addressing lump sum payment issues and consumer confusion regarding forbearance options under the Coronavirus Aid, Relief, and Economic Security (or "CARES") Act.
Member Statements
Committee Chair Maxine Waters (D-CA) described Ms. Kraninger's actions as Director of the CFPB to be "a betrayal of the consumers [she is] tasked with protecting." Ms. Waters charged that Ms. Kraninger has made little effort of substance to address the hardships consumers are currently facing as a result of the pandemic in their interactions with "payday lenders, mortgage services, credit card companies and the credit reporting bureaus." Ms. Waters stated that Ms. Kraninger has instead focused on undermining existing consumer protections, citing the CFPB's revisions to regulations governing (i) payday, car title and installment loans, and (ii) the Home Mortgage Disclosure Act ("HMDA") reporting requirements.
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