ALTA-supported Bill to Improve Guidance Issued by the CFPB Introduced in Senate
September 18, 2018
On Sept. 17, U.S. Sens. Orrin Hatch (R-Utah) and James Lankford (R-Okla.) introduced the ALTA-supported Give Useful Information to Define Effective Compliance Act (GUIDE Compliance Act). The GUIDE Compliance Act (S. 3443) would enhance transparency and predictability to the rulemaking process of the Consumer Financial Protection Bureau (CFPB).
S. 3443 is a companion to the bipartisan bill that was passed out of the House Financial Services Committee last week by a vote of 38-14. H.R. 5534 is sponsored by Reps. Sean Duffy (R-WI) and Ed Perlmutter (D-CO).
ALTA applauded the Senators for introducing the bill and encouraged the House to take up the bill. ALTA President Steven G. Day NTP thanked the members of Congress for acknowledging the need for a bureau that matches simple and clear regulations with helpful and illustrative guidance and examples.
“This legislation would create a more formal process at the Consumer Financial Protection Bureau for issuing useful guidance to complement the consumer financial laws it enforces,” Day said. “Having the CFPB provide more clarity to regulations, such as the Real Estate Settlement Procedures Act (RESPA), allows ALTA members to better serve consumers and deliver peace of mind to homebuyers every day. Regulations create the rules of the road for consumers and business, and when everyone understands the guidelines, markets operate more efficiently. Regulations should support business activity in ways that maximize benefits for consumers, and we believe this bill helps achieve this.”
Sen. Hatch added, “The CFPB has immense responsibility in protecting consumers. With this responsibility comes the need for effective transparency and genuine accountability. This bill helps consumers and businesses better understand the agency’s rules, and it also reduces the risk of misinterpretation of guidance. The GUIDE Compliance Act brings greater clarity and certainty to the CFPB’s rulemaking process so that American households and businesses can consume, save and invest with confidence.”
According to Sen. Lankford, “The federal rulemaking process should be transparent and accountable to every American, and the BCFP should provide necessary or appropriate guidance related to the rules they implement. The GUIDE Compliance Act will provide consumers and providers a strong grasp of the rules issued by the BCFP, including a well-defined understanding of how those rules will directly affect them. This is a good, commonsense bill that will provide clarity for consumers and help prevent ‘gotcha’ enforcement. I look forward to the bill working its way through the legislative process to become law.”
Contact ALTA at 202-296-3671 or communications@alta.org.