Kraninger Beefs Up CFPB Advisory Committees, Including CU Council
Kraninger says the advisory council will advise the agency on the bureau’s regulation of services that CUs offer.
Reversing a decision made by her predecessor, CFPB Director Kathy Kraninger announced Thursday that she intends to increase the role that advisory boards—including the Credit Union Advisory Council—play in agency decision-making.
“I’ve seen firsthand how the Bureau benefits from the valuable input provided by committee members,” Kraninger said. “I have also seen how the joint committee meeting is resulting in members sharpening their ideas by engaging in a thorough dialogue.”
The advisory groups include the Consumer Advisory Board, Academic Research Council Community Bank Advisory Council, and the Credit Union Advisory Council.
Mulvaney disbanded the previous credit union advisory panel and fired its members in June, causing a huge controversy. At the same time, he disbanded community bank and consumer advisory panels. Members of those panels had been appointed by former CFPB Director Richard Cordray, who was a much more aggressive regulator than Mulvaney.
The panel were much smaller than they had been under Cordray.
As part of her effort to increase the role of the committees, Kraninger has written a new charter for each of the advisory groups.
For credit unions, she said the advisory council will advise the agency on the bureau’s regulation of services that credit unions offer. The committee meeting should “serve to better inform the CFPB’s policy development, rulemaking and engagement functions as they relate to credit unions.”
“No determination of fact or policy will be made by the committee and the committee will have no formal decision-making role and no access to confidential supervisory other confidential information,” the new charter states.
Kraninger said that beginning in FY20, the committees will expand their focus to include broad policy issues. They will meet three times a year rather than two and they will hold joint meetings.
Membership will be extended from a one-year term to a two-year term. The terms will be staggered.
Kraninger also said that the bureau will begin accepting applications for members to serve on the panels.
Membership on the board is limited to credit union employees with total assets of $10 billion or less.