Following the expiration of Russell Vought’s term as Acting Director of the Consumer Financial Protection Bureau (CFPB) on August 1 under the Federal Vacancies Reform Act, Deputy Director Mark Paoletta has assumed the role of Acting Director.

You may recall that President Trump recently nominated Brian Johnson to serve as the agency's new director on June 10. The Senate Banking Committee held Johnson’s confirmation hearing on July 23 but has not yet voted on his nomination.

Until Johnson is confirmed and sworn in, the CFPB will continue operating under acting leadership. Meanwhile, Vought is expected to remain at the CFPB as a senior advisor until Johnson’s Senate confirmation is complete. He also continues to serve as Director of the White House Office of Management and Budget.

In addition to his Acting Director role, Paoletta is also Chief Legal Officer at the CFPB and has been closely involved in the bureau's recent initiatives and strategic direction. Thus, many believe that the CFPB is likely to maintain its current course until Johnson is confirmed.

Congress created the CFPB in response to the 2008 financial crisis and the ensuing recession. Its purpose was to function as an independent regulator with broad enforcement authority over consumer financial products and services.

While Paoletta is not expected to change the bureau’s immediate direction, his remarks at the recent Financial Literacy and Education Commission offer additional insight into the philosophy guiding its current approach. During the meeting, Paoletta sharply criticized former CFPB Director Rohit Chopra's approach to regulation and consumer education, describing it as heavily focused on enforcement. He contrasted that approach with the CFPB’s current strategy, which he said emphasizes helping consumers avoid problems before they occur rather than relying primarily on enforcement after harm has occurred.

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