Moore Amdt. to CFPA Act Helps Preserve Legislation's True Intent: Credit, Lending Product Regulation

The House Financial Services Committee today passed an amendment to the Consumer Financial Protection Agency (CFPA) Act authored by Congresswoman Gwen Moore (D-Wisc.) that would alter the bills proposed regulation of credit, mortgage and title insurers. The CFPA Act is intended to regulate credit and lending products, to protect consumers from predatory practices of lenders. However, a section of the underlying bill goes beyond that purpose to also give the proposed Consumer Financial Protection Agency new authority to regulate three types of insurers credit, mortgage and title insurers while leaving out all other lines of insurance.

The amendment would keep the CFPA from gaining new authority to regulate the credit, mortgage and title insurers themselves. These three types of insurance are primarily sold by the insurers to lenders, who then sell the insurance to consumers. Instead, under the Moore amendment, the CFPA would still have the authority, under its power over lender and credit providers, to stop any unsavory insurance product moving from lenders to consumers.

And, as it currently stands, insurers are already regulated by their state insurance commissioners.

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