CFPB Confusion | One Bureau, Two Acting Directors?
Earlier this month, Richard Cordray resigned as Director of the Consumer Financial Protection Bureau. According to Housing Wire, “this decision [came] after months of speculation over Cordray’s future at the CFPB. Most recently, President Donald Trump openly discussed firing Cordray with members of Congress while signing the resolution to repeal the CFPB’s controversial arbitration rule.”
Upon stepping down, Cordray appointed his then-Chief of Staff Leandra English as deputy director. Over the Thanksgiving weekend, the CFPB was thrown into a leadership standoff as President Trump appointed Mick Mulvaney as acting director. There is apparent internal conflict as CFPB staff are unsure of who to follow. While there has been reference to the Federal Vacancies Reform Act of 1998 and the law that created the CFPB, it is yet unclear how this power struggle will play out.
Many are unsupportive of Mulvaney’s appointment, given his outspoken dislike for the CFPB, past comments calling the bureau “a joke” and previous support for eliminating the bureau altogether. An official White House statement said, “The President looks forward to seeing Director Mulvaney take a common-sense approach to leading the CFPB’s dedicated staff, an approach that will empower consumers to make their own financial decisions and facilitate investment in our communities.”
Janus AMC is closely following changes to the CFPB which may affect the industry. Check back soon for the latest updates.