Need for BCFP oversight commission stressed at Kraninger hearing

July 19, 2018

Two members of the Senate Banking Committee called for board/commission oversight of the Bureau of Consumer Financial Protection during the confirmation hearing of Kathleen Kraninger, President Donald Trump’s choice to lead Bureau.  

Kraninger currently serves as associate director at the Office of Management and Budget, where she oversees the agencies responsible for border policy and coordinating disaster aid. 

During the hearing Sen. Robert Corker (R-Tenn.) said BCFP is in need of oversight by a commission, citing the often political nature of the bureau’s decisions. 

Sen. Jerry Moran (R-Kan.) also cited his preference in a board/commission at the Bureau. Moran said a governing body would prevent dramatic swings in policy from one director to another and create more transparency with Congress and other agencies. 

"We thank a number of senators for raising the importance of structure at the Bureau to prevent fluctuation in policy," said CUNA President/CEO Jim Nussle. "The common-sense approach for Congress is to establish a multimember, bipartisan commission. Short of that, confirming a permanent director at the Bureau brings us one step closer to protecting consumers and the millions of members relying on credit unions. We look forward to working with Ms. Kraninger, should she be confirmed by the Senate, and hope that she will recognize the unique framework of credit unions and the enormous benefit they provide to American consumers in need of financial services." 

In her testimony Kraninger, said under her leadership the Bureau would to adhere four principles: fairness and transparency, to include consideration of tailoring; cooperation with other financial regulators and state authorities; the safeguarding of sensitive information; and accountability to the American people, including with respect to the Bureau's budget. 

Kraninger has until July 31 to respond to any questions Senators may submit for the record. The Senate Banking Committee is expected to vote on her nomination that week.