Providing for Consideration of H.R. Standard Merger and Acquisition Reviews Through Equal Rules Act of Providing for Consideration of H.R. Citizens' Right to Know Act of and Providing for Consideration of S.J. Res. Providing for Congressional Disapproval of A Rule Submitted By Bureau of Consumer Financial Protection

Floor Speech

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Mr. ZELDIN. Mr. Speaker, I rise in support of this rule for an important resolution, S.J. Res. 57. I proudly sponsor the House companion legislation to this Congressional Review Act resolution to repeal ill-founded guidance issued by the Consumer Financial Protection Bureau relating to the dealer-directed auto lending market.

Mr. Speaker, only to a group of unaccountable bureaucrats in Washington, D.C., would it make sense to raise the cost of lending for some of the most vulnerable consumers while, at the same time, claiming you are doing this edict to help them.

The indirect auto lending market, also known as dealer-directed financing, is loans offered to car buyers in the dealership where they are purchasing the vehicle, as opposed to direct auto loans which consumers get from banks or other financial institutions.

Dealer-directed financing is an important option for consumers and provides them and the dealership they are purchasing the vehicle from with the flexibility to meet a consumer's needs based on their budget and credit score.

In 2013, in an attempt to shut down this market, the Consumer Financial Protection Bureau, under the leadership of Richard Cordray, issued this flawed guidance based on questionable ``disparate impact'' statistics. To justify this illegal and secretive edict, the CFPB falsely accused honest automobile dealerships and the financial institutions they work with of unproven violations of fair lending practices.

The CFPB, through its own admission, noted a 20 percent error rate in its data, and an independent audit of the data used to justify this ruling showed an error rate as high as 41 percent.

If the CFPB had followed the law, most notably, the Administrative Procedure Act, which requires public notice and comment on any pending regulations, they could have been held accountable for their use of deeply flawed data to justify a questionable regulation. To get around the law, however, the CFPB issued the ruling as ``guidance,'' but then proceeded to enforce this mandate as a Federal regulation. Through this flawed attempt to take control of the $1.1 trillion auto lending market by effectively barring dealer-directed financing, this Obama-era CFPB ruling could raise the cost of auto loans by nearly $600 for each consumer.

Let's be absolutely clear: discrimination of any kind, whether in lending, housing, or other financial services, is morally repugnant and also very illegal under various Federal and State laws, including the Equal Credit Opportunity Act, or ECOA.

But what is also very wrong and illegal is when a rogue Federal agency sidesteps the law and common sense by creating a false claim of unfair lending practices with zero proof, transparency, or accountability.

Mr. Speaker, I strongly support the hard work of Director Mulvaney in undoing so much of the damage caused by his predecessor, but it is critical we assist him by changing the law. Through passage of this resolution, Congress will use its Article I powers and our authority under the Congressional Review Act to strike down this flawed regulation.

Once a regulation is repealed through passage of CRA resolution into law, Federal agencies are barred from issuing a similar regulation in the future. Through this resolution, we can assure that this Warren- Cordray-Obama attack on automobile dealerships and their customers will never be revived by a future administration.

Just 2 years ago, a similar measure to rein in a flawed CFPB ruling passed this Chamber with overwhelming bipartisan support. I hope this continues to be a priority on both sides of the aisle, and I urge all of my colleagues to support this rule.

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