The story our entire industry is keeping our eyes on: President Donald Trump is considering a replacement for Richard Cordray, the current director of the Consumer Financial Protection Bureau (CFPB).
This is huge news for our industry, as Trump is considering and met with former Rep. Randy Neugebauer as the replacement. Neugebauer has recently been very vocal in his criticism of the CFPB’s actions and its current structure.
“Unfortunately, the CFPB’s efforts represent yet another example of a Washington-knows-best mentality. Using behavioral economics, which by its very principles says policymakers should make choices for unsophisticated individuals, the CFPB has set down a road of paternalistic erosion of consumer product choice and access to credit.” – Randy Neugebauer
The CFPB is currently regulating our industry out of business. But there is a lot of optimism that new leadership will understand the value that our industry brings to the overall economy and regulates from that perspective.
Donald Trump’s ability to replace Cordray and appoint a new CFPB director might hinge on the results of the PHH v. CFPB case rehearing. The rehearing is being handled by the D.C. Circuit Court of Appeals, which will have to decide whether to uphold the October ruling that CFPB is unconstitutionally structured. If the court does uphold the original ruling, Trump will be able to remove Cordray at will and the bureau could be required to restructure and/or lose its status as an independent agency.
This gives our industry a huge sense of optimism when it comes to our future.
You can read further details here.