How a new CFPB head may revamp rules, enforcement
A new Republican director of the Consumer Financial Protection Bureau is likely to take immediate action to roll back certain rules while curbing pending enforcement actions that are considered too harsh on financial firms.
The Trump administration is considering naming Mick Mulvaney, the director of the Office of Management and Budget, on an interim basis to replace the CFPB's director, Richard Cordray, who announced Wednesday that he will leave the agency this month.
While there are some legal limitations on what a GOP appointee to the CFPB can do, attorneys, analysts and former agency officials said that there are actions that could be taken promptly to change the direction before a permanent successor is named and confirmed. Those range from scaling back enforcement actions in the pipeline to taking a hard look at the CFPB’s “Qualified Mortgage” rule, which lenders have argued is hurting availability of credit.
"A new director is likely going to want to understand what is going on and to change course," said Ori Lev, a partner at Mayer Brown and a former CFPB deputy enforcement director. "The first thing a new director is going to want to do is to get a lay of the land and the kinds of issues that are the most imminent in the enforcement realm."
"I’d expect one of the first things he would do is review pending litigation to see if the agency wants to drop claims or cases, seek different relief, or stick with the agency’s position."
Following is a guide to what’s likely to be targeted first.