CFPB & SEC Nominees Testify Before Senate Banking Committee
On Tuesday, President Biden’s pick to lead the Consumer Financial Protection Bureau (CFPB), Rohit Chopra, testified before Senate Committee on Banking, Housing and Urban Affairs, along with Gary Gansler, nominated to lead the Securities and Exchange Commission (SEC). Among the various topics discussed, lawmakers raised questions about mortgage lending rules and discussed their issues with consumer credit reporting. During his testimony, Mr. Chopra stated that due to the economic devastation stemming from Covid-19, millions face the prospect of losing their home, with communities of color particularly at risk. He also warned members that many workers have seen their jobs disappear and that they will not be able to easily resume paying their rent and mortgage payments, noting that will be critical for the CFPB to monitor markets to prevent illegal foreclosures. The CFPB recently released a report warning of widespread evictions and foreclosures once federal, state, and local pandemic protections come to an end, absent additional public and private action. The CFPB report projected 8.8 million renter households were behind on their rent payments as of last December, and over 2 million families were at least three months behind on their mortgages.
The hearing also focused on concerns with the role of credit reporting bureaus and the need for greater transparency, as well as the overall scope of the responsibilities and direction of the two federal financial regulatory agencies. A few Senators questioned the appropriateness of the SEC regulating activities deemed outside of shareholders economic interests, such as environmental impact. Several members also requested the SEC to incorporate political-giving and climate related disclosures in SEC rules.
To view the full Senate Banking Committee Nomination Hearing, click here.
Senate Begins Debate on $1.9 Trillion COVID-19 Relief Bill
On Friday morning, the Senate began debate on President Biden’s $1.9 trillion American Rescue Plan, but has yet to reach an agreement ensuring the bills final passage.