6 takeaways from CFPB chief's visit to Capitol Hill
WASHINGTON — In her appearance before the House Financial Services Committee Thursday, Consumer Financial Protection Bureau Director Kathy Kraninger gave the panel's Democratic majority little assurance that she would reverse decisions made by former acting Director Mick Mulvaney, but she also appeared supportive of the agency's mission to look after consumers.
The hearing, part of the CFPB's semiannual report to Congress, was a crucial test for Democratic House leaders in their oversight of the bureau's Trump-appointed leadership, and of how Kraninger would fare under the spotlight of congressional scrutiny.
During the hearing, Kraninger was noncombative as Democrats took her and the agency to task for its policy reforms put in place after Richard Cordray, an Obama appointee, stepped down as the CFPB's director in 2017.
The new CFPB director insisted that she is committed to the agency’s mission of protecting consumers, but offered little insight into the direction of the agency’s rulemakings or restructuring, including a proposal to abandon tough new underwriting requirements in the agency’s payday lending rule drafted under Cordray.
Kraninger also said she is focused on supervision and prevention, rather than on enforcement. Republicans consistently criticized Cordray for what they described as "regulation by enforcement."
Here are key takeaways from the hearing: