Question Whether Cordray’s Tenure to Be Cut Short

Category: Rules and Regulations

President Donald Trump and key lawmakers broached the subject of firing Richard Cordray, the Consumer Financial Protection Bureau (CFPB) director, while signing a bill to overturn that agency’s latest arbitration rule, reports HousingWire. The CFPB, which oversees regulation of the mortgage, lending, and credit industries, has been a target of Republican lawmakers since the agency’s formation under the Obama Administration.

Trump “went around the room” with advisors

A lively but short-lived discussion was had over the future of the CFPB under Cordray, whose term as director ends in July 2018. House Financial Services Committee Chairman Jeb Hensarling, R-Texas, reportedly told the President that his administration would “expend less energy undoing the CFPB’s actions” if Cordray were to be fired. Hensarling has called before for the director to be fired.

According to Kayla Tausche, a CNBC reporter said to have knowledge of the exchange, Trump “went around the room,” asking Republican Congressmen what should be done about Cordray. Hensarling and Rep. Sean Duffy, R-Wisc., were for an expedited firing of the agency head. However, other lawmakers reportedly disagreed. There was said to be concern that a premature firing could have negative consequences, as Cordray is said to be mounting a campaign to run for governor of Ohio and could use the “hero status” and fundraising momentum a firing would provide.

The article reports Cordray was expected to make an official announcement of his bid for Ohio in October after the CFPB finalized a payday lending rule, but that did not materialize. Also reported, Gary Cohn, director of the White House National Economic Council, allegedly gave Cordray an ultimatum in April to resign or be fired, yet neither have transpired months later. The article reports discussions on the matter could continue.

Posted on: Monday, November 13, 2017