Dem's Draft Bill to Reverse Mulvaney CFPB Moves Posted by Association of Vermont Credit Unions on 12:59 PM

As reported by CU Times, House Financial Services Chair Maxine Waters (D-Calif.) is preparing to go head-to-head with CFPB Director Kathy Kraninger with the drafting of legislation to reverse decisions made by former Acting Director Mick Mulvaney.  Waters and Democrats on her committee were scheduled to hold a news conference about the bill today.

The hearing and the legislation are certain to provoke a clash between Waters and Kraninger during a committee hearing on Thursday. Kraninger said during her confirmation hearing that she agreed with Mulvaney’s decisions at the agency.

In a memo in preparation for Thursday’s hearing, Democratic staff said there has been a significant drop in enforcement actions at the agency since former Director Richard Cordray, an Obama Administration nominee, left. 

The draft legislation being circulated is pointed in its criticism of Mulvaney. “The statute establishing the Consumer Bureau has been grossly misinterpreted under Mr. Mulvaney’s leadership, in a manner that is inconsistent with the agency’s statutory purpose, objectives, and functions,” it states, adding, “The Consumer Bureau, now under a new Director, should promptly reverse all anti-consumer actions taken during Mr. Mulvaney’s tenure.”

The draft legislation would, among other things:

• Require that the agency be named the Consumer Financial Protection Bureau. Mulvaney had said that the proper name of the bureau was the Bureau of Consumer Financial Protection. Kraninger reversed the decision.
• Restrict the reorganization of bureau units, offices, and boards. Mulvaney reorganized the bureau’s fair lending office, moving it to the director’s office.
• Limit the hiring of political appointees by the director. Mulvaney has been criticized for the appointment of political employees.
• Ensure that the agency’s consumer complaint database remain public. Mulvaney had questioned whether such complaints should be open.
• Formally establish offices of Fair Lending and Equal Opportunity and Students and Young Consumers.
• Expand the Consumer Advisory Board and ensure that two-thirds of its members “represent the interests of consumers.”
• Ensure that other advisory boards, including one dealing with credit unions, have at least one-third of its membership representing consumer interests.