Our Positions | Consumer Financial Protection Bureau (CFPB)

Following the financial crisis of 2008, congressional leaders and the Obama administration began work on massive financial regulatory reform legislation that would ultimately become the Dodd-Frank Wall Street Reform and Consumer Protection Act. One of the cornerstones of the legislation was the Consumer Financial Protection Bureau. The brainchild of Elizabeth Warren prior to her joining the Senate, the CFPB was designed to regulate all financial products and those companies that provide them. While the CFPB was granted an incredible amount of power with a very broad scope, NAMIC’s efforts during the legislative process were successful in ensuring that insurance companies and products were exempted from the CFPB’s jurisdiction.

Unfortunately, the CFPB has demonstrated its willingness to push the limits of its power to try to extend its reach to entities it was never intended to regulate. For example, auto dealers were to be exempt from CFPB regulation, but the bureau is looking for creative methods to use its rulemaking and enforcement authority to impact the industry via indirect auto lending. NAMIC remains wary of the CFPB’s efforts to expand its authority to impact insurance in roundabout ways. The association has and will continue to work with members of Congress to ensure the bureau receives the proper level of oversight and it does not encroach on insurance issues.

NAMIC Position

Insurance has always been and should always be regulated at the state level. The Dodd-Frank Wall Street Reform and Consumer Protection Act specifically notes that it was not the intention of the legislation to change the state-based system of insurance regulation or delegate consumer protection to the federal government. No CFPB regulation should impact the business of insurance.

CFPB Director Confirms Bureau Does Not Have Regulatory Authority Over Insurance

March 16, 2020 The Senate Committee on Banking, Housing, and Urban Affairs held a Consumer Financial Protection Bureau oversight hearing March 16 for the bureau’s Semi-Annual Report to Congress. Read more

Business of Insurance Regulatory Reform Act to be Introduced

October 28, 2019 Sens. Tim Scott, R-S.C., Joe Manchin III, D-W.Va., and Tammy Baldwin, D-Wisc., plan to introduce legislation that would amend the Consumer Financial Protection Act of 2010 by clarifying the limits of the Consumer Financial Protection Bureau’s... Read more

CFPB Director Testifies Before House, Senate Committees

October 21, 2019 Kathy Kraninger, director of the Consumer Financial Protection Bureau, appeared before the House Financial Services Committee Oct. 16 and the Senate Committee on Banking, Housing, and Urban Affairs the following day to deliver her... Read more

SCOTUS to Conference on Constitutionality of CFPB

October 15, 2019 The nation’s highest court is scheduled to conference this week on a petition challenging the constitutionality of the structure of the Consumer Financial Protection Bureau. What makes this unique is that the CFPB joined the Justice Department in... Read more

CFPB Director Appears Before Senate Banking Committee

March 18, 2019 Consumer Financial Protection Bureau director Kathy Kraninger testified before the Senate Banking Committee on March 12 for the hearing “The Consumer Financial Protection Bureau’s Semi-Annual Report to Congress.” The hearing had a similar feel to a... Read more


Jon Bergner
Vice President - Public Policy and Federal Affairs