The bureau estimated the modifications would cost an additional $5 million to $5.5 million. The CFPB did not specify how much money would go to each employee who received the highest rating.

The House Financial Services Committee held a series of hearings with current and former CFPB employees alleging racial and gender discrimination among CFPB managers.

CU Times asked CFPB Director Richard Cordray if it was his idea to retroactively raise the performance ratings.

“I have no comment on that,” Cordray responded, following his remarks at NAFCU's caucus.

Mulvaney, a member of the House Financial Services Committee, said the CFPB gets its funding through the Federal Reserve, not directly through congressional appropriations, which makes it harder for Congress to exercise oversight.

“It makes it difficult to get a phone call returned. It makes it difficult to schedule a hearing. It makes it difficult to get answers to simple questions: 'When are you coming back to see us again?' We can't get an answer to that. It has been a truly adversarial relationship,” he said.

Mulvaney, who also serves on the House Small Business Committee, said the CFPB has tremendous authority over financial institutions and there is very little elected officials can do to protect those entities from any overreach by the agency.

“It's extraordinary frightening,” he said. “I am somewhat encouraged in that we do have some bipartisan support for reforms to the CFPB and we'll see if we can make some progress on that in the next Congress.”

Mulvaney suggested Congress replace the CFPB's director with a five-member commission and require the agency to go through the same rulemaking processes as other regulators.

“(Senate Majority Leader) Harry Reid is preventing most of these from going forward; even bills, by the way, that have Democrat support in the House,” he said. “A change of control in the Senate would allow us to at least force the President to have a debate on these issues because that discussion is not taking place.”

Congressman Patrick Murphy (D-Fla.), also a member of the Financial Services Committee, told the NAFCU Caucus audience that Fannie Mae and Freddie Mac must be reformed, not eliminated.

“The extent to which, is the question,” he said. “I think they need to combine. I think they need to be downsized. I think we need to have more private sector involvement. I do believe we need a government backstop. Ensuring a 30-year fixed rate mortgage exists is critical for our housing market.”

Murphy said he hopes the next Congress tackles GSE reform by adopting a reasonable solution.

Meanwhile, during his Caucus speech, Cordray addressed the CFPB's mortgage rules, saying the bureau has been working to ensure a smooth transition to compliance for financial institutions. He said so far, the rules have yielded positive results with minimal market disruption.

The CFPB has coordinated with other agencies, published plain-language guides and other compliance aids, and kept in regular contact with industry participants, consumer advocates, legal aid attorneys, housing counselors, and others to answer their questions and address issues that they raised, Cordray said. The bureau has also produced educational materials to help people better understand the kinds of consumer protections the CFPB has put in place under the new rules, he added.

“We have done all this because we believe that consumers will be best served if the financial industry understands and properly implements the rules,” Cordray said. “The results, so far, have been very positive – few market disruptions, greater consumer protections, and a more sustainable financial marketplace that will support a stronger economy.”

Both Mulvaney and Rep. Blaine Luetkemeyer (R-Mo.) mentioned the NCUA in their speeches.

Mulvaney told the audience the NCUA should release detailed budgets.