Federal law requires that the new agency in charge of protecting consumers from questionable or predatory lending practices must have an advisory board, and now it is seeking nominations to fill out that group.
The federal Consumer Financial Protection Bureau is now seeking nominations for advisors on its government-mandated 16-person advisory board, which will advise and consult with top officials from the agency on a number of matters, according to a report from the Washington Post. The board will have at least 16 members, six of which must be nominated by the various Federal Reserve banks around the country. However, the final members of the board will be chosen by CFPB top executive Richard Cordray.
Experts predict that the CFPB's advisory board will be comprised largely of people familiar with the banking industry and other, related financial services, but will also include community advocates and similar institutions, the report said. However, some critics note that while the CFPB must put the board together, it is under no obligation whatsoever to actually listen to its advice.
Federal law states the group must meet a minimum of twice a year, and like many similar boards for other government agencies, its decisions are in no way binding, the report said. On the other hand, the CFPB has already been proactive in seeking outside opinions before enacting policies, including from the industries it seeks to regulate more heavily.
The CFPB gained full regulatory power in July 2011, but has really ramped up its operations since Cordray's appointment in early 2012. It now oversees a larger number of both bank and nonbank lenders and has generally expanded its purview considerably.
