Patrick McHenryChairman

Washington, January 13, 2015 -

LINK TO THE STORY

A top Republican lawmaker on Monday urged the U.S. Consumer Financial Protection Bureau to abandon the renovation of its Washington building and find cheaper office space, a sign critics intend to keep up scrutiny of the agency this year.
 
House Financial Services Committee Chairman Jeb Hensarling said in a letter to bureau Director Richard Cordray that scrapping the renovation would save money.
 
Republicans have criticized the consumer bureau for policy and management decisions since it opened in 2011, and the office revamp has been a key focus. A government watchdog last July said the plans did not follow the CFPB's internal guidelines.
 
"The American people expect federal agencies to be responsible stewards of the funds entrusted to them," Hensarling said in the letter, which was obtained by Reuters. "I trust that you will make the responsible financial decision."
 
CFPB spokesman Sam Gilford declined to comment on the letter. Bureau officials previously said that the building, which is located near the White House, was in dire need of fixing up and that the overhauled space would not be opulent.
 
Hensarling's letter was also addressed to the heads of the Office of the Comptroller of the Currency (OCC), which owns the building and rents it to the consumer bureau, as well as the General Services Administration. The CFPB has moved to temporary space managed by that agency while its office is under renovation.
 
Congress created the CFPB as part of the 2010 Dodd-Frank financial law to oversee mortgages, credit cards and other consumer products. Republicans claim it is too powerful and want more oversight of its budget, now funded by the Federal Reserve.
 
They point to the office makeover as evidence the bureau needs more scrutiny. Cost estimates for the project rose several times, and Republicans say the final tab will be too high.
 
In July, the bureau's inspector general said the renovation was expected to cost $145 million. But because the CFPB leased temporary space off-site, total costs would be closer to $215 million, the watchdog report said.
 
Republicans also mocked plans for the renovated space, which included a glass staircase, concession kiosk and "water wall" ending in a splash pool.
 
Hensarling, a Texas Republican, estimated ending the renovation plans and finding a cheaper office would save the bureau about $100 million. He said the OCC should sell the building to the highest bidder.