CFPB Director Explains Economic Research and Evidence-Based Policymaking at CFPB

CFPB Director Kathy Kraninger explained the role of economic research and evidence-based policymaking, including Dodd Frank-mandated assessments, in CFPB rulemaking.

At the Harvard Kennedy School, Ms. Kraninger discussed the manner in which the CFPB conducts research and the topics of research the CFPB prioritizes. Among the topics she mentioned were:

• Debt Collection Disclosures concerning Statutes of Limitation Rules: Notably, the CFPB has recently adopted a rule that addresses unfair practices in debt collection and taken enforcement action against a firm for improperly collecting time-barred debt;
• Amendments to "Qualified Mortgage" ("QM") Rules: The CFPB used the findings from the Dodd Frank-mandated assessments to determine the effectiveness of existing QM rules and to justify proposed changes to the QM; and
• Fair Lending Rules: Ms. Kraninger stated that fair lending analyses pertaining to the Equal Credit Opportunity Act and the Home Mortgage Disclosure Act are meant to determine whether "legitimate differences" in creditworthiness across demographic groups explain disparities in lending outcomes.