4/20/18 2:08 PM

What you need to know about the CFPB ongoing drama


It's the end of April, and there's still no permanent Director of the CFPB.  The battle between Acting Director Mick Mulvaney and Leandra English is still going strong.  On January 30, 2018 English filed a brief for her appeal in response to the January ruling denying a preliminary injunction to block the appointment of Mulvaney as the CFPB’s Acting Director.

On February 23, 2018, the administration filed its brief and an oral argument was scheduled for April 12th.  While there is a slim chance the court may rule that Mulvaney should be removed as Acting Director, it is in not likely he would be replaced with English.  The President would be able to appoint a new Acting Director, one who doesn’t have another role like Mulvaney, who also heads the White House Office of Management and Budget.  The administration may also choose to be heard in front of a full court of appeals rather than name a new Acting Director.  Stay tuned for the court’s final ruling.

Meanwhile, during his time thus far as Acting Director, Mulvaney has made some pretty strong statements:

  • Requested ZERO dollars from the Federal Reserve. It’s worth noting that under Director Cordray, the CFPB had requested close to $300 million over six months.
  • Stated that the CFPB would take a more hands off approach to enforcement.
  • The CFPB has not filed any enforcement actions since late November, when Mulvaney was named Acting Director.

On April 2, 2018, the CFPB issued its first semi-annual report to Congress since Mulvaney took over as Acting Director in which he asked Congress to take a tighter grip over the CFPB.  Mulvaney asked Congress for the following:

  • Take control of the bureau’s funding.
    • Congress would control the CFPB’s budget, rather than the bureau asking for and receiving money directly from the Federal Reserve.
  • Make his successors removable at will by the president.
  • Give itself the sole power to finalize the bureau’s rules.
    • Congress would have legislative approval for “major” CFPB rules.
  • Install an inspector general.

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