Washington – Congressman Alex X. Mooney introduced H.R. 1313, 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.”
18 Financial Services Committee Republicans signed onto the bill as original cosponsors: Bill Posey (FL), Mike Flood (NE), Warren Davidson (OH), Tom Emmer (MN), Pete Sessions (TX), John Rose (TN), Andy Ogles (TN), Zach Nunn (IA), Young Kim (CA), Bryan Steil (WI), Roger Williams (TX), Scott Fitzgerald (WI), Bill Huizenga (MI), Barry Loudermilk (GA), Blaine Luetkemeyer (MO), Erin Houchin (IN), Andy Barr (KY) and Ralph Norman (SC).
Additionally, several organizations representing financial institutions and businesses across the country expressed their support for the bill:
“The West Virginia Bankers Association applauds Representative Mooney’s action to hold the CFPB accountable with the introduction of the Transparency in Consumer Financial Protection Bureau (CFPB) Cost-Benefit Analysis Act. The requirement to consider the costs and benefits to stakeholders in the federal rulemaking process is sound policy and will benefit consumers, small businesses, and community banks across West Virginia,” said Sally Cline, President and CEO of the West Virginia Bankers Association.
“We welcome Congressman Mooney’s common-sense legislation which would require the CFPB to undergo a cost/benefit analysis before implementing new regulations’” said Rich Schaffer, President/CEO of the West Virginia Credit Union League. “It’s beneficial to consumers, small businesses, and our lawmakers to see the impact of new regulations before they are implemented.”
“ICBA and the nation’s community banks thank Rep. Mooney for reintroducing the ICBA-supported Transparency in CFPB Cost-Benefit Analysis Act. By requiring the CFPB to create a rigorous cost-benefit analysis for each new proposed rule, policymakers will help prevent regulations that are overly burdensome, costly, and counterproductive,” said Rebeca Romero Rainey, president and CEO of the Independent Community Bankers of America.
“This legislation would bring much needed transparency and accountability to the CFPB, which has a massive effect on businesses, consumers, and the economy at large,” said CUNA President/CEO Jim Nussle. “Credit unions have long championed a cost/benefit analysis requirement for bureau rulemakings, and we thank Rep. Mooney for his continued leadership in this space.”
“NAFCU applauds Congressman 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.
“The CFPB is continuing its pattern of proposing poorly-vetted regulations with little or no regard for the significant costs they would impose on banks of all sizes and, consequently, on the consumers they serve. Congressman Mooney’s Transparency in CFPB Cost-Benefit Analysis Act will bring much-needed accountability to the Bureau and ensure that its actions do not impose needless, duplicative or counterproductive regulatory requirements that make it harder for banks to meet the needs of their customers, clients and communities,” said ABA President and CEO Rob Nichols.