Congresswoman Maxine Waters Announces Passage of Amendment to Improve the Oversight Board of the Proposed Consumer Financial Protection Agency
"Over the last two years, we have seen the impact of foreclosures on communities, small banking institutions, and our constituents and how predatory financial products like subprime credit cards and mortgage loans were targeted to minorities and low-income consumers," said Congresswoman Waters. "In order to ensure that this doesn't happen again, groups and individuals with the consumer's best interests in mind must have a seat at the table."
H.R. 3126 creates a new federal agency tasked with protecting consumers and regulating institutions that offer financial products such as credit cards, mortgages, and payday loans. As originally proposed, the CFPA Oversight Board would be comprised of seven members, representing only federal government agencies.
Congresswoman Waters' amendment would require the President, with the advice and consent of the Senate, to name five other Board Members from the fields of consumer protection, fair lending and civil rights, representatives of depository institutions that primarily serve underserved communities, or representatives of communities that have been significantly impacted by higher-priced mortgage loans. Her amendment also provides that no more than 3 of these members can be from the same political party, ensuring that different perspectives are included as part of the Board's conversations.
There is precedent for including public and private actors on an Oversight Board. For example, the FDIC's Board consists of 3 persons nominated by the President in addition to the heads of the Office of Thrift Supervision and the Office of the Comptroller of the Currency. The Overseas Private Investment Corporation (an agency which supports U.S. government investment in emerging markets worldwide, fostering development and the growth of free markets) has a Board of Directors with fifteen members— eight from the private sector and seven from the federal government.
"Additional voices on the Oversight Board will only ensure that it acts in the best interests of consumers. Without consumer advocates, the Board could miss out on valuable insights and information, including how the CFPA can do a better job of protecting consumers," said Congresswoman Waters. "Adding these additional voices does not in any way endanger the stability of the Board – in fact, it strengthens it."
In addition to Congresswoman Waters' amendment, the entire Consumer Financial Protection Agency bill today passed a vote in the House Financial Services Committee and will soon be taken up by the entire House of Representatives.
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