CONGRESSMAN MOONEY INTRODUCES Transparency in Consumer Financial Protection Bureau (CFPB) Cost-Benefit Analysis Act

TODAY – Congressman Alex X. Mooney introduced H.R. 7412, the Transparency in Consumer Financial Protection Bureau (CFPB) Cost-Benefit Analysis Act. This bill would enhance rulemaking requirements for the Bureau of Consumer Financial Protection. Cost-benefit analysis is an essential tool for regulators to weigh the costs of implementation and compliance with the benefits of the regulation.

“It is long past time for the Consumer Financial Protection Bureau to adhere to a rigorous and transparent cost-benefit analysis,” said Congressman Mooney. “My bill will help stop regulatory overreach by the CFPB; and provide regulatory relief to small businesses, community banks, and credit unions across West Virginia.”

13 Financial Services Committee Republicans signed onto the bill as original cosponsors: Ann Wagner (R-MO), Bill Posey (R-FL), Blaine Luetkemeyer (R-MO), Bill Huizenga (R-MI), Roger Williams (R-TX), French Hill (R-AR), Tom Emmer (R-MN), Warren Davidson (R-OH), Ted Budd (R-NC), David Kustoff (R-TN), Trey Hollingsworth (R-IN), John Rose (R-TN) and Scott Timmons (R-SC).

Additionally, several organizations representing financial institutions and businesses across the country expressed their support for the bill.

“ICBA and the nation’s community banks thank Rep. Mooney for introducing the Transparency in CFPB Cost-Benefit Analysis Act. Requiring a thorough cost-benefit analysis for proposed CFPB rules will help ensure new regulatory burdens are not excessive, duplicative, or inconsistent with existing regulations,” said Rebeca Romero Rainey, President & CEO of Independent Community Bankers of America.

“Unchecked CFPB oversight has an outsized financial effect on business owners and consumers across the country. With this new legislation, Rep. Mooney is helping to bring transparency and accountability to the agency,” mentioned Jim Nussle, President & CEO of Credit Union National Association.

“NAFCU applauds Representative Mooney’s leadership on ensuring transparent evaluation on regulations set forth by the CFPB. The Transparency in CFPB Cost-Benefit Analysis Act will ensure the Bureau is held to the same standard as other agencies when reviewing the cost-benefit analysis for its proposed rules. While credit unions understand the need for appropriate and balanced rulemaking, it’s important for regulators to understand the overall impact, whether, through compliance costs or the upshot on competition, these rules would have on financial institutions,” said Dan Berger, President and CEO of NAFCU.

“The U.S. Chamber welcomes legislation introduced by Representative Mooney requiring the CFPB to conduct more rigorous cost-benefit analysis. Doing so will instill confidence that the regulatory actions the CFPB undertakes will improve outcomes for consumers by increasing transparency in the rulemaking process. Evidenced-based policymaking that is grounded in data will help the CFPB protect consumers without unnecessarily limiting the product choices made available by the market,” added Bill Hulse, Vice President, Center for Capital Markets Competitiveness, U.S. Chamber of Commerce.

“CBA long has called on policymakers to implement well-founded rules that are openly debated and their impact carefully considered before being applied to the marketplace. We applaud Rep. Mooney’s legislation that will ensure the Bureau conducts a cost-benefit analysis of new rules. The ‘Transparency in CFPB Cost-Benefit Analysis Act’ will lessen unnecessary regulatory costs and help advance rules and regulations that benefit consumers,” added Sam Whitfield, Senior Vice President, Congressional Affairs, Consumer Bankers Association.