WASHINGTON–President Donald Trump is expected to nominate Kathy Kraninger to head the Bureau of Consumer Financial Protection (BCFP).
Kraninger is associate director with the Office of Management and Budget, which is currently headed by Mick Mulvaney, who has been doing double-duty as acting director of the BCFP, as well. The president had until June 22 to nominate someone for the BCFP position before Mulvaney would have been required to leave. With a nomination in place, Mulvaney can now serve as long as the nomination remains before Congress.
The nomination of Kraninger means J. Mark McWatters, who had been rumored to be among the potential candidates for the BCFP post, will remain as chairman of NCUA.
Several analysts have said they expect Kraninger will have a tough confirmation battle in the Senate, where Democrats and consumer groups have expressed strong opposition to the changes at the BCFP under Mulvaney, who has sought to roll back its regulatory reach.
White House deputy press secretary Lindsay Walters said in a statement that Kraninger "will bring a fresh perspective and much-needed management experience to the BCFP, which has been plagued by excessive spending, dysfunctional operations, and politicized agendas. As a staunch supporter of free enterprise, she will continue the reforms of the Bureau initiated by Acting Director Mick Mulvaney, and ensure that consumers and markets are not harmed by fraudulent actors. The White House hopes that she will be promptly confirmed by the Senate."
In response, both credit union trade groups expressed optimism over the nomination.
"NAFCU looks forward to the opportunity to work with Ms. Kraninger should she be confirmed as CFPB director," said NAFCU President and CEO Dan Berger. "Although NAFCU consistently argues that credit unions should not be subject to the CFPB's enforcement authority, we have had a strong working relationship with Acting Director [Mick] Mulvaney and appreciate him reviewing the bureau's actions and bringing some relief to credit unions over the past few months. We plan to continue this relationship with Ms. Kraninger."
CUNA President/CEO, Jim Nussle said in a statement, “Credit unions have faced an unprecedented amount of regulatory burden over the last several years. We look forward to working with new leadership at the bureau, and urge Ms. Kraninger to protect consumers by addressing bad actors in the marketplace, without unnecessarily limiting the ability of credit unions to serve their members. We are hopeful that under her leadership the Bureau will recognize the unique structure of credit unions and the enormous benefit that credit unions provide to American consumers in need of financial services."