House eyes vote on reversing Mulvaney efforts to rein in consumer bureau

House eyes vote on reversing Mulvaney efforts to rein in consumer bureau
© Stefani Reynolds

The House may vote within weeks on a bill to reverse the Trump administration's efforts to rein in the Consumer Financial Protection Bureau (CFPB) and prevent future directors from doing the same.

House Majority Leader Steny HoyerSteny Hamilton HoyerThe case for congressional pay raises Approve USMCA before it's too late Lawmakers push to permanently ban automatic pay raises for members of Congress MORE (D-Md.) wrote in a Thursday letter to Democratic lawmakers that the lower chamber may take up the Consumers First Act next month amid a slew of other legislative priorities.

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Introduced by Rep. Maxine WatersMaxine Moore WatersHillicon Valley: Facebook unveils new cryptocurrency | Waters wants company to halt plans | Democrats look to force votes on election security | Advertisers partner with tech giants on 'digital safety' | House GOP unveils cyber agenda On The Money: Trade chief defends Trump tariffs before skeptical Congress | Kudlow denies plan to demote Fed chief | Waters asks Facebook to halt cryptocurrency project On The Money: Trade chief defends Trump tariffs before skeptical Congress | Kudlow denies plan to demote Fed chief | Waters asks Facebook to halt cryptocurrency project MORE (D-Calif.), chairwoman of the House Financial Services Committee, the bill would undo several measures taken to reel back the CFPB’s oversight and regulation under former acting Director Mick MulvaneyJohn (Mick) Michael MulvaneyCongressional leaders, White House officials to meet Wednesday on spending Congressional leaders, White House officials to meet Wednesday on spending The Hill's 12:30 Report — Presented by MAPRx — Supreme Court double jeopardy ruling could impact Manafort MORE.

Mulvaney, the acting CFPB chief from November 2017 through December 2018, reorganized and weakened the power of the bureau’s Office of Fair Lending, shrank and restaffed several advisory boards and moved toward removing a public database of complaints against banks and lenders.

Mulvaney also changed the bureau’s name to the Bureau of Consumer Financial Protection. That move was reversed in December by his successor, CFPB Director Kathy Kraninger, after The Hill reported that the move would cost the agency between $9 and $19 million and cost entities regulated by the agency roughly $300 million.

Waters’s bill would reverse changes enacted by Mulvaney and prevent future directors from making similar moves. The bill would also create an Office of Students and Young Consumers focused on student loans, debt repayment and financial product access for young adults and their families.

Waters and Democratic lawmakers were fiercely critical of Mulvaney’s efforts to weaken the CFPB, an agency created in 2010 to protect consumers from predatory and abusive financial practices.

While the bill is likely to pass the Democratic-led House, it is almost certain to die in the Republican-controlled Senate. The GOP was staunchly opposed to the creation of the CFPB through the Dodd-Frank Act, and accused the agency of overstepping and abusing its power under Democratic leadership between 2011 and 2017.