Spencer Bachus, the chairman of the House Financial Services Committee, criticize the “lack of accountability in the [Consumer Financial Protection Bureau]’s leadership” and the “lack of transparency in the CFPB’s funding structure” on Thursday.
“The absence of adequate checks and balances is especially troubling given that neither Congress nor the executive branch can fully review the Bureau’s spending,” Bachus said. “The CFPB’s requests to draw millions of dollars from the Federal Reserve often take the form of nothing more than e-mails that lack any details as to how the money will be spent.”
Bachus also questioned the agency’s decision to publish “raw, unverified” data related to consumer complaints.
“Rather than help consumers, publicly disclosing unverified information could instead mislead consumers,” Bachus said. “It is my hope that the CFPB will take the steps necessary to ensure that the data it releases is accurate.”
Since the CFPB’s operational beginning, the federal watchdog agency has attempted to remedy a number of consumer issues, including simplifying mortgage disclosure rules. Bachus also pointed to the CFPB’s efforts to develop a one page mortgage disclosure rule and urged the agency to avoid further complication of mortgage rules.
“These regulations are already very complex, and in carrying out its responsibility, the CFPB must avoid adding to that complexity,” Bachus said. “It appears the dream of a one-page mortgage rule is dead. As the CFPB goes forward in the mortgage rule-making process, I encourage it to consider how the complexity of this and other mortgage-related rules might burden consumers and small businesses.”