Preparing for a new CFPB leader

Chopra was instrumental in setting up the bureau following the 2010 passage of the Dodd-Frank Act and served as the bureau’s first student loan ombudsman. Most recently he has been a commissioner for the Federal Trade Commission. Biden nominated someone to replace Chopra in September.

“Today’s mortgage market is the safest it has been in decades,” Mortgage Bankers Association (MBA) President and CEO Bob Broeksmit said. “MBA looks forward to working with Director Chopra to sustain this progress, protect consumers, and provide clarity and consistency in the guidance given to lenders.”

Consumer Bankers Association (CBA) President and CEO Richard Hunt congratulated Chopra on his confirmation.

“CBA looks forward to working with Mr. Chopra to ensure the most thorough consumer protection initiatives are upheld and applied equally to all participants in the marketplace, including fintechs and nonbank lenders,” Hunt said.

“Under Director Chopra’s leadership, the bureau should strive for financial regulations that last longer than a power shift in Washington. The agency’s brief history has already shown how constant changes in leadership can cause considerable uncertainty for consumers, small businesses, and financial institutions when rules are repealed and rescinded between directors.”

Hunt said his organization hopes Chopra will stand by his commitment to make transparency an important goal.

“Consumers are best served when regulators put politics aside and draft regulations with input from all stakeholders, leading to the implementation of well-founded rules which are debated, examined and their impact carefully considered before being enacted,” he added. “Now more than ever, banks need – and consumers deserve – a reliable rulemaking process as the economy climbs out of the effects from the coronavirus pandemic.”

Chopra is expected to adopt a more activist role while at the bureau and enforcement is expected to pick up as the new director focuses on preventing and correcting consumer harm. During his confirmation hearing, he said he would work to stop any sort of illegal or egregious behavior that would harm consumers. Actions he included in that goal were holding student loan servicers accountable to the terms promised to borrowers as payments resume and ensuring the bureau played a leading role in analysis and taking appropriate steps to protect service members, veterans, and their families from financial abuse.

The National Consumer Law Center (NCLC) welcomed Chopra to his role.

“Chopra has deep experience and a track record of working to protect consumers from his days at [sic] the CFPB student loan ombudsman to his work on issues posed by technology and scams as a commissioner at the Federal Trade Commission,” NCLC Associate Director Lauren Saunders said. “He knows the importance of confronting problems old and new and ensuring that the CFPB is a strong watchdog on behalf of consumers. Acting Director Dave Uejio has set the CFPB on the right track and done a lot of groundwork for Chopra so he can hit the ground running.

“Chopra will bring the creativity, insight, commitment, and deep knowledge that is needed to protect consumers and stop unfair, deceptive, and abusive practices in today’s pressing problems – from protecting homeowners, tenants and students struggling with the COVID economic crisis to addressing racial injustices through the financial system to stopping old abuses like overdraft fees and credit reporting problems and new ones like fintech evasions.  We look forward to working with him.”

“NAFCU [National Association of Federally-Insured Credit Unions] congratulates Rohit Chopra on his confirmation to serve as CFPB director,” NAFCU President and CEO Dan Berger said. “Our credit union members have been at the forefront of helping consumers weather the financial impact of the pandemic. We look forward to working with Director Chopra to ensure that credit unions can continue to assist their members as the economy recovers from the impact of the pandemic.”