The Supreme Court’s 7-2 vote
upholding the constitutionality of the Consumer Financial Protection Bureau
(CFPB) elicited a slew of reactions from financial trade advocates. Common
themes among the responses included relief the matter was settled and would not
cause disruption in key economic sectors or to consumers.
The following are official
statements provided to Dodd Frank Update and/or distributed publicly by
national financial trade associations regarding the court’s decision:
Mortgage Bankers Association
(MBA) President and CEO Bob Broeksmit:
“MBA is relieved that the
Supreme Court avoided a ruling that would have disrupted the housing and
mortgage markets and harmed the economy and consumers. While we frequently
disagree with the bureau on how they interpret or enforce particular
rules, a decision that would have invalidated the bureaus’ previous rules could
have had severe consequences for single-family and multifamily mortgage
markets.”
Consumer Bankers Association
(CBA) President and CEO Lindsey Johnson:
“CBA is heartened that this
important legal question has been resolved. The Supreme Court’s holding in
favor of the CFPB’s constitutionality, however, should not be considered a
popular endorsement of the CFPB’s recent and seemingly political rulemakings,
many of which have skipped important legal requirements and have raised
concerns under the Administrative Procedure Act. Any agency, even if its
funding is constitutional, is unfortunately capable of engaging in rushed and
ill-conceived rulemakings, as the CFPB has recently.
“CBA looks forward to
continuing to work with the CFPB, as we have for nearly 13 years, to further a
safe and competitive financial marketplace.”
Independent Community
Bankers of America (ICBA) President and CEO Rebeca Romero Rainey:
“While the Supreme Court has
upheld the CFPB’s funding structure, ICBA looks forward to judicial review of
the CFPB’s 1071 small-business data collection and reporting rule. We have long
said the bureau exceeded its statutory authority and failed to comply with the
Administrative Procedures Act when it finalized the rule.
“Meanwhile, ICBA and the
nation’s community banks will continue to strongly support legislation to rein
in the CFPB’s excessive regulatory burdens that impede access to credit,
including the CFPB Transparency and Accountability Reform Act, the Small Lenders
Exempt from New Data and Excessive Reporting Act, the Bank Loan Privacy Act,
and the Rectifying UDAAP Act.
“ICBA will continue working
through every available channel to mitigate the negative impact of excessively
burdensome CFPB rulemakings on community banks and the local communities they
serve.”
America’s Credit Unions President
and CEO Jim Nussle:
“The court’s decision to side
with the CFPB is one of acute consequence to credit unions and their 142
million members who are suffering from the unchecked actions of the bureau.
America’s Credit Unions is disappointed with the ruling as we strongly believe
that the CFPB’s current funding structure denies any accountability to Congress
and ultimately the consumers it is tasked with serving.
“The CFPB has the ability to
shape the entire financial services marketplace with its actions, but has
chosen to pursue overreaching regulatory burdens as a result of its broad
powers. America’s Credit Unions will continue to advocate for accountability and
transparency at the bureau.”