Democrats and progressive groups say they hope Chopra will restore the CFPB reputation earned under Obama.
‘Bootstraps are loans’
Linda Jun, senior policy counsel for the Americans for Financial Reform, said the CFPB’s focus on lending products makes it pivotal in the Biden administration’s efforts to narrow the racial wealth gap and predicted that equity will be at the core of the bureau’s work.
“There will be a lot of attention to the racial wealth gap and why that exists,” she said. “What is available for borrowers of color? And how does that compare to what other borrowers are being offered? That question, that comparison, that research probably applies to almost every product the CFPB supervises.”
Texas Democrat Al Green, a member of the House Financial Services Committee, which has jurisdiction over the CFPB, said ensuring a fair shot at borrowing money is key to closing the racial wealth gap.
“In this country, we expect people to pull themselves up by their bootstraps, and bootstraps are loans,” he said in an interview. “Loans, good lending can make a great difference for a good many people. This is important because, as you know, there’s the wealth gap that we’re trying to close.”