Bill Overview
Title: CFPB Stability Act of 2022
Description: This bill restructures the leadership and funding of the Consumer Financial Protection Bureau. Specifically, the bill removes the bureau from the Federal Reserve System. Additionally, the bill eliminates the positions of director and deputy director and establishes a five-person panel appointed by the President and confirmed by the Senate, with not more than three members belonging to any one political party. Under the bill, the inspector general of the bureau must be appointed by the President and confirmed by the Senate. Under current law, the inspector general of the Federal Reserve Board also serves as the inspector general of the bureau. Further, the source of funding for the bureau is changed from Federal Reserve System transfers to annual appropriations. Under current law, the transfers from the Federal Reserve System permit the bureau to be funded outside of the annual appropriations process.
Sponsors: Sen. Toomey, Patrick [R-PA]
Target Audience
Population: Consumers in financial markets
Estimated Size: 331000000
- The CFPB (Consumer Financial Protection Bureau) plays a role in regulating financial markets and protecting consumers in financial matters.
- The changes in leadership and funding of the CFPB are likely to alter its efficiency and the way it enforces consumer financial protection laws.
- Any changes in how the CFPB operates can have wide-reaching effects on all consumers, particularly those who are engaging with banking, loans, and other financial services.
Reasoning
- The CFPB Stability Act of 2022 involves significant changes to the Consumer Financial Protection Bureau's structure, leadership, and funding, which can impact its operations.
- The policy's budget constraints suggest that immediate, high-impact changes may be limited, especially within the first year.
- The CFPB's role in overseeing financial markets and its ability to protect consumers is crucial, as it can affect financial stability, access to fair markets, and general consumer welfare.
- The impact on individuals will vary; some might see direct effects depending on their interactions with financial institutions and regulatory protections, while others, especially those less engaged with financial products, might not notice immediate changes.
Simulated Interviews
Financial Analyst (Austin, TX)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- I appreciate the intention to increase transparency with a multi-member leadership panel.
- I'm concerned about potential funding instability which could delay important regulatory developments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 9 |
Bank Branch Manager (Chicago, IL)
Age: 56 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- The changes might streamline decision-making, but funding shifts worry me.
- Fearful of inconsistent funding affecting regulatory stability which could burden banks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 8 |
Tech Start-up Founder (New York, NY)
Age: 29 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 2/20
Statement of Opinion:
- I'm excited about potential for innovations if regulations are effectively streamlined.
- Concerned about regulatory clarity during transitioning phases.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Loan Officer (Los Angeles, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Worried about how changes might confuse consumers.
- Annual appropriations could mean tougher financial education efforts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 7 | 7 |
Retired (Atlanta, GA)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- The CFPB provides protection that is essential for seniors like me.
- I am uneasy about political influences possibly affecting consumer protection measures.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 7 |
Student (Boston, MA)
Age: 23 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- More political oversight is worrying.
- I want assurance that my student loans are fairly regulated and protected.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 8 |
Small Business Owner (Dallas, TX)
Age: 39 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Changes in the CFPB worry me due to my need for accessible financing.
- Restructuring could affect the ease of getting help when financial issues arise.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
Freelance Artist (Seattle, WA)
Age: 47 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- I appreciate potential oversight improvements but fear for the resource allocation.
- Need assurance that alternative banking methods remain safe.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 7 | 7 |
High School Teacher (Miami, FL)
Age: 52 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 15/20
Statement of Opinion:
- Potential impacts on credit services are a concern.
- Stable oversight of financial products I depend on is crucial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
IT Professional (Denver, CO)
Age: 41 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 11/20
Statement of Opinion:
- I hope for more transparent CFPB operations.
- Concerned about effectiveness of management reshuffle in enforcing fair financial practices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $70000000)
Year 2: $51000000 (Low: $31000000, High: $71000000)
Year 3: $52020000 (Low: $32500000, High: $71500000)
Year 5: $55240000 (Low: $35000000, High: $75900000)
Year 10: $61270000 (Low: $39000000, High: $84000000)
Year 100: $206151000 (Low: $130000000, High: $265000000)
Key Considerations
- The change to a panel governance structure might enhance stability and reduce risks associated with single-point leadership.
- Annual appropriations could lead to varying funding levels for the CFPB, potentially impacting its operations.
- Potential resistance or delays in policy implementation might arise during the transition phase.