WASHINGTON–A man who once referred to the Consumer Financial Protection Bureau as a “sad, sick joke” may be appointed as its interim director—or it could be part of a bigger strategy to make it easier to get a different CFPB critic appointed to the job.
Mick Mulvaney, who currently heads the Office of Management and Budget—a position once held by CUNA CEO Jim Nussle—has been identified as the most likely candidate to at least temporarily lead the CFPB, according to multiple reports. The CFPB position will become vacant when current director Richard Cordray exits at the end of the month, as CUToday.info reported here. Cordray is expected to run for governor of Ohio.
Under the plan, Mulvaney would not leave his current position. Instead, sources told the Washington Post that Mulvaney, in turn, would then likely name one other person or a team of people to oversee the CFPB on a day-to-day basis while he remains at the OMB.
Some Washington analysts have suggested, however, that by floating the name of an outspoken critic such as Mulvaney for the CFPB position, the real objective is to make it easier to get a less-outspoken but just-as-critical person approved for the job on a permanent basis. The CFPB director serves a five-year term.
President Trump and the Republicans have been outspoken critics of the CFPB, arguing it has created unnecessary layers of red tape for financial institutions and other providers of financial services. Credit unions and their trade groups have also been joined by the banking industry in condemning the CFPB for contributing to the regulatory burden.
According to the Post, it could be months before Trump nominates a permanent CFPB director and his selection is confirmed by the Senate. But under a federal vacancies law, Trump can replace an outgoing director temporarily with someone from another agency who has already won Senate approval.
Sen. Elizabeth Warren (D-MA), who is largely credited with driving creation of the CFPB in 2011 prior to having been elected, has publicly warned that consumer protections are at risk should the person named to lead the agency be a "Trump-appointed industry hack.”
To date, the CFPB has won approximately $12 billion in settlements for American consumers.