As we alerted you on Oct. 12, the House Financial Services Committee met last week to begin work on H.R. 3126, the Consumer Financial Protection Agency Act. While the CFPA legislation already excluded the majority of property/casualty insurance, NAMIC has been aggressively advocating for the removal of mortgage, title, and credit insurance from its jurisdiction as well. We are pleased to report that these lines of property/casualty insurance are now exempted from the authority of the CFPA.
NAMIC has spent the last several weeks educating members of Congress about the system of strong consumer protections already in place for property/casualty insurance. Because of these protections and the nature of property/casualty insurance in general, NAMIC urged that no types of insurance be included within the CFPA mandate – including mortgage, title, and credit insurance.
Endorsing our position, Reps. Gwen Moore, D-Wis., and Erik Paulsen, R-Minn., introduced an amendment today that effectively removed these types of insurance from the jurisdiction of the CFPA. NAMIC has worked closely with their staff over the last several weeks to achieve broad, bipartisan support for this amendment. Our efforts were successful as this amendment was adopted unanimously in committee by a voice vote. We will continue to work with the committee to address any technical language changes that may be necessary before the bill comes to the floor.
It is anticipated that the House will bring several different pieces of financial regulatory reform legislation – including the CFPA – to the floor in the coming weeks. It is not clear exactly when final action on this will take place, but congressional leadership has stated that they intend for the House to vote on this series of bills before the end of the year.
Please direct questions to Dylan Jones.