President Donald Trump has appointed Management and Budget Director Mick Mulvaney as acting Director of the CFPB after Richard Cordray resigned the post. The appointment has not been without controversy, however, as Cordray attempted an 11th hour appointment of his own. Cordray referenced language in Dodd Frank when he appointed his chief of staff Leandra English as acting director hours before Trump appointed Mulvaney under the Federal Vacancies Reform Act. English filed suit to block Mulvaney’s appointment, but U.S. District Judge Timothy Kelly rejected the arguments in the law suit and recognized the Federal Vacancies Reform Act as the prevailing authority for the appointment. The judge’s ruling should pave the way for Mulvaney to serve as acting director until a permanent director is nominated by the President and confirmed by the U.S. Senate.
CBAI has been critical of the CFPB in numerous meetings and comment letters for not using the authority granted to the CFPB by Congress under the Dodd-Frank Act to broadly exempt community banks from rules intended exclusively for the largest banks, financial firms, and the shadow banking industry. CBAI is encouraged by the Mulvaney appointment and looks forward to working with the acting director and his eventual successor to appropriately focus the efforts of the Bureau and give community banks needed regulatory relief.