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Monday, August 5, 2013

House GOP Raises Questions about CFPB Departures

Senior House Republicans expressed concern last Wednesday about the departures of several top Consumer Financial Protection Bureau officials, who may “have left the CFPB in order to profit from rules they helped create.”

In a letter signed by House Oversight Committee Chairman Darrell Issa (R-Calif.) and House Financial Services Committee Chairman Jeb Hensarling (R-Texas), among others, the representatives singled out Raj Date, who founded mortgage firm Fenway Summer after leaving the CFPB in January, and Gary Reeder, Chris Haspel and Mitch Hochburg, who joined Date’s firm.

Fenway Summer’s business includes originating non-Qualified Mortgages, “a market that Fenway is uniquely positioned to serve,” the representatives said. “It appears that former CFPB employees are now offering financial products in a market sector created by the very rules they were in a position to influence. . . . This conduct raises serious questions about the integrity of the CFPB’s rulemaking process and the conduct of some of its most senior former officials.”

The letter requested that the CFPB send to the oversight and financial services committees internal communications from the departed employees related to QM, documentation of CFPB staff attrition rates, communications between Date and other CFPB employees on his future firm and communications between Fenway Summer personnel and CFPB employees.

Read the letter.