Votes are still being counted in some House of Representatives races, but the Senate and Presidential elections have been decided in favor of the Republicans. President-elect Donald Trump has secured both the Electoral College and the popular vote. News outlets suggest that the House is likely to remain under GOP control.
Senator Tim Scott from South Carolina is expected to chair the Senate Banking Committee, with Senator Elizabeth Warren potentially serving as Ranking Member. The upcoming retirement of House Financial Services Chair Patrick McHenry has sparked a four-way contest for his position among Representatives Andy Barr, French Hill, Bill Huizenga, and Frank Lucas.
As a new administration and Congressional session begin, there is hope that financial services and consumer credit will be prioritized. With a Republican sweep, potential changes could impact these sectors significantly.
Several bills have been introduced in Congress aiming to modify aspects of the Consumer Financial Protection Bureau (CFPB). These include proposals to alter small business lending rules, nonbank registry regulations, and require detailed justifications for rulemaking by the Bureau. Other legislative efforts focus on establishing new offices within CFPB for economic analysis and an inspector general role or changing its authority over unfair practices.
The American Financial Services Association (AFSA) supports many of these initiatives to enhance accountability and transparency at CFPB while protecting consumers and providing clarity for industry participants regarding regulatory procedures.
However, significant reforms like repealing the Consumer Financial Protection Act of 2010 seem unlikely due to narrow Republican vote margins and reluctance among legislators to dismantle an agency focused on consumer protection.
Despite tight margins making swift reforms improbable, AFSA remains committed to collaborating with policymakers on beneficial legislative proposals for consumers and financial institutions. Updates will continue as President-elect Trump's transition team progresses.