CFPB Reform Takes Center Stage at House Financial Services Hearing

Posted by Erin Hall on July 16, 2026

On Wednesday, July 15, the House Financial Services Committee held a hearing on the Consumer Financial Protection Bureau’s semi-annual report, with Acting CFPB Director Russell Vought testifying before the Committee. His written testimony is available here.

During the hearing, lawmakers discussed the CFPB’s structure, funding, supervision, and enforcement authority. Vought emphasized the need for greater accountability and statutory limits on the Bureau’s authority, while Members of Congress raised differing views on the agency’s role and the level of oversight needed to ensure consumers are protected.

CFPB Reform Act of 2026

The hearing also included discussion of draft legislation, the CFPB Reform Act of 2026. The proposal would bring the CFPB under the congressional appropriations process, increase congressional oversight of the Bureau, raise the supervisory threshold for very large financial institutions to $21 billion from the current $10 billion threshold, and provide greater clarity around unfair, deceptive, or abusive acts or practices, commonly referred to as UDAAP.

These are the types of reforms credit unions have long called for. Bringing the Bureau under the appropriations process would provide a more traditional and transparent accountability structure. Updating the supervisory threshold would help better focus CFPB supervision on the largest financial institutions. Clarifying UDAAP would provide needed certainty for institutions working to comply with the law and serve their members responsibly.

Why This Matters for Credit Unions

For credit unions, regulatory clarity is not an abstract issue. Unclear expectations and shifting interpretations create real compliance challenges, especially for smaller institutions with limited staff and resources. Every additional layer of uncertainty can take time and resources away from lending, financial education, member service, and community investment.

GoWest will continue to advocate for a CFPB framework that protects consumers, promotes accountability, and recognizes the unique structure and mission of credit unions. As Congress continues to evaluate CFPB reform, credit unions have an important opportunity to reinforce the need for balanced oversight, clear rules of the road, and regulatory relief that allows them to remain focused on serving their members and communities.

Posted in Advocacy on the Move, Regulatory Advocacy.