CFPA Mark Up Set for Later This Month

The House Financial Services Committee has set September 23 as a tentative date to mark up legislation to create a new consumer protection agency that would set uniform mortgage lending standards for depositories, non-banks and other players in residential finance. The American Bankers Association strongly opposes the bill (H.R. 3126) because it would limit federal preemption and create the Consumer Financial Protection Agency (CFPA), which would have regulatory and enforcement powers over depositories (on top of what they already face). The Mortgage Bankers Association claims the legislation — proposed by the White House and introduced by committee chairman Barney Frank, D-Mass. — fails to create a federal safety and soundness regulator for non-depository lenders. The CFPA would be responsible for compliance with uniform national lending standards. "The CFPA bill doesn't hit all the marks," said MBA chairman John Courson. Meanwhile, the Independent Community Bankers of America has proposed changes to the CFPA bill that would minimize the burden on community banks. "We are participating in the process," said ICBA's top lobbyist Steve Verdier. ICBA accepts the concept behind a CFPA but wants the agency to focus mainly on enforcement and examinations of non-depository lenders.