On April 3, 2014, the Bureau of Consumer Financial Protection Small Business Advisory Board Act was introduced into the U.S. House of Representatives. The bill would require the Consumer Financial Protection Bureau (CFPB) to create an advisory panel of small financial services companies. The bill would further require the CFPB to meet regularly with small-business owners that work in the consumer finance industry and must comply with the CFPB’s regulations.
The CFPB already has four advisory boards in place, including a Consumer Advisory Board made up of industry representatives and consumer advocates, a Community Bank Advisory Board, a Credit Union Advisory Board, and an Academic Advisory Board, which assists the CFPB with research and other projects. The CFPB currently has no advisory board for smaller-scale companies, such as appraisers, mortgage brokers, loan officers, and title professionals, all of whom have to comply with the CFPB’s rules and regulations for mortgage lending and other aspects of consumer finance.
The bill, which does not yet have a number, calls for the creation of a 12-member board with representatives from a wide swath of consumer financial product vendors. The board would have regular meetings twice each year, and the CFPB's director would have the right to call meetings more frequently, as necessary.
The CFPB has reportedly declined to comment on the pending legislation.