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Letters Put CFPB on Defense

Signaling new flak in ongoing exchanges between members of Congress and the ""Consumer Financial Protection Bureau"":http://www.consumerfinance.gov/ (CFPB), two House committees addressed Treasury secretary Timothy Geithner in a letter on Monday last week with concerns about ""Treasury Department"":http://www.treasury.gov/Pages/default.aspx adviser Elizabeth Warren's refusal to unveil her involvement with mortgage servicers and state authorities in their negotiations. The letter is the second to address widespread concerns about the ""CFPB's"":http://www.consumerfinance.gov/ dealings.


The ""House Committee on Financial Services"":http://financialservices.house.gov/ joined the ""Committee on Oversight and Government Reform"":http://financialservices.house.gov/, represented by chairs Spencer Bachus and Darrell Issa, respectively, in calling for the release of any documents related to the correspondence in the possession of the ""Treasury Department"":http://www.treasury.gov/Pages/default.aspx.

Testimony provided by Elizabeth Warren in past hearings ""downplayed the ""CFPB's"":http://www.consumerfinance.gov/ involvement in negotiations between mortgage servicers and state and Federal authorities,"" the letter read.


The letter accused Warren of going back on an initial statement indicating she would only request advice from state authorities by taking an active role in the resolution of negotiations between mortgage servicers and state attorneys general nationwide.

""The American people have a right to know the ""CFPB's"":http://www.consumerfinance.gov/ true role in these negotiations,"" the chairs said.

Earlier this month ""Judicial Watch"":http://www.judicialwatch.org/, a nonpartisan watchdog group, requested information about the letters from the ""CFPB"":http://www.consumerfinance.gov/ under the Freedom of Information Act. The group ""documented"":http://www.scribd.com/collections/3104315/Elizabeth-Warren-and-the-Consumer-Finance-Protection-Bureau-Orig-CFPB-Requests-Appeal subsequent denials by the agency to release the requested information.

This letter marks the second received by the Treasury secretary with concerns directed at the ""CFPB"":http://www.consumerfinance.gov/. Last week ""U.S. Chamber of Commerce"":http://www.uschamber.com/ president David Hirschmann ""aired"":https://themreport.com/articles/chamber-ftc-cfpb-need-fine-tuning-2011-06-22 his concerns in a formal document that called for a Memorandum of Understanding between the ""Federal Trade Commission"":http://www.ftc.gov/ and the consumer protection bureau to eliminate overlap.

In it, Hirschmann recommended an increase in coordination between the agencies, citing concerns over ""unnecessary duplication and conflict"" and urging the assignment of specific and exclusive responsibilities to each agency.

The ""Treasury Department"":http://www.treasury.gov/Pages/default.aspx has not prepared a response to the House committees' letter. The ""CFPB"":http://www.consumerfinance.gov/ declined to issue a comment on either letter.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.

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