Democrats are urging the Consumer Financial Protection Bureau to put racial equity at the core of its agenda, using action on mortgages, student loans and even its own hiring to help close a wealth gap.
House and Senate Democrats said in interviews the Democrats are urging the Consumer Financial Protection Bureau to put racial equity at the core of its agenda, using action on mortgages, student loans and even its own hiring to help close a wealth gap.at the agency under President Joe Biden should return to a more aggressive policing of discrimination in the consumer financial sector. One House Democrat has even introduced a bill that would revive and expand undercover CFPB investigations of lending practices.
The Democrats’ comments are not only an indication of what they expect from the next CFPB director, but also a signal of what he can expect — if he’s confirmed — when he appears before Congress.
Biden’s nominee, Rohit Chopra, is awaiting a Senate vote. Democrats will have to discharge his nomination from committee before voting on confirmation because the Senate Banking panel was deadlocked in the March vote to advance him.
“A strong agency is going to help us take on structural racism,” Senate Banking Chairman Sherrod Brown, D-Ohio, said in an interview. “We know that there is all kinds of discrimination in people’s dealings with financial institutions. … The people that need the help the most, the people that have been hurt the most, are more likely to be women and more likely to be people of color.”
Established by the 2010 financial overhaul, the CFPB polices financial institutions’ dealings with consumers. The agency has jurisdiction over banks, credit unions, securities firms, payday lenders, mortgage and student loan servicers, and debt collectors.
Under President Barack Obama, the agency’s aggressive enforcement agenda returned $11.9 billion to 29 million consumers, according to CFPB data.
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