CFPB–IG Reform Act of 2023

To require Senate confirmation of Inspector General of the Bureau of Consumer Financial Protection, and for other purposes. 1. Short title This Act may be cited as the Bureau of Consumer Financial Protection-Inspector General Reform Act of 2023 CFPB–IG Reform Act of 2023 2. Appointment of Inspector General Chapter 4 (1) in section 401— (A) in paragraph (1), by inserting the Bureau of Consumer Financial Protection, the Export-Import Bank of the United States, (B) in paragraph (3), by inserting the Director of the Bureau of Consumer Financial Protection; the President of the Export-Import Bank of the United States; (2) in section 415— (A) in subsection (a)(1), by striking and the Bureau of Consumer Financial Protection (B) in subsection (c), by striking For purposes of implementing this section, the Chairman of the Board of Governors of the Federal Reserve System shall appoint the Inspector General of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection. The Inspector General of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection shall have all of the authorities and responsibilities provided by this Act with respect to the Bureau of Consumer Financial Protection, as if the Bureau were part of the Board of Governors of the Federal Reserve System. (C) in subsection (g)(3), by striking and the Bureau of Consumer Financial Protection 3. Requirements for the Inspector General for the Bureau of Consumer Financial Protection (a) Establishment Section 1011 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5491 (1) in subsection (b)— (A) in the subsection heading, by striking and Deputy Director , Deputy Director, and Inspector General (B) by inserting after paragraph (5) the following: (6) Inspector General There is established the position of the Inspector General. ; and (2) in subsection (d), by striking or Deputy Director , Deputy Director, or Inspector General (b) Hearings Section 1016 of such Act is amended by inserting after subsection (c) the following: (d) Additional Requirement for Inspector General On a separate occasion from that described in subsection (a), the Inspector General of the Bureau shall appear, upon invitation, before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services and the Committee on Energy and Commerce of the House of Representatives at semiannual hearings regarding the reports required under subsection (b) and the reports required under section 405 of title 5, United States Code. . (c) Funding for Office of Inspector General Section 1017(a)(2) of such Act is amended— (1) by redesignating subparagraph (C) as subparagraph (D); and (2) by inserting after subparagraph (B) the following: (C) Funding for Office of Inspector General Each fiscal year, the Bureau shall dedicate 2 percent of the funds transferred pursuant to paragraph (1) to the Office of the Inspector General. . (d) Participation in the Council of Inspectors General on Financial Oversight Section 989E(a)(1) of such Act is amended by adding at the end the following: (J) The Bureau of Consumer Financial Protection. . (e) Deadline for appointment Not later than 60 days after the date of the enactment of this Act, the President shall appoint an Inspector General for the Bureau of Consumer Financial Protection in accordance with section 403 of title 5, United States Code. 4. Effective date (a) In general The amendments made by this Act shall take effect on the date on which the first Inspector General of the Bureau of Consumer Financial Protection is confirmed by the Senate. (b) Appointment The President may appoint, and the Senate may confirm, an Inspector General of the Bureau of Consumer Financial Protection before the amendments made by this Act take effect. (c) Transition The Inspector General of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection shall, upon the date on which the first Inspector General of the Bureau of Consumer Financial Protection is confirmed by the Senate, become the Inspector General of the Board of Governors of the Federal Reserve System.

Summary: Bureau of Consumer Financial Protection-Inspector General Reform Act of 2023 or the CFPB-IG Act of 2023 This bill establishes a separate Office of Inspector General for the Consumer Financial Protection Bureau (CFPB). Currently, such oversight of the CFPB is combined with the Office of Inspector General for the Board of Governors of the Federal Reserve System.