President Trump revealed his 2019 federal budget plan this week, which features “major savings and reform proposals” across many offices and agencies, including the Consumer Financial Protection Bureau.
The Consumer Financial Protection Bureau will continue its more low-key, hands-off approach to consumer protection and regulation, one which equally emphasizes the rights of the regulated.
In the latest change at the CPFB, acting director Mick Mulvaney requested $0 from Federal Reserve Chair Janet Yellen for the second quarter, instead proposing to pull from a back-up fund created by former director Richard Cordray.
Cordray named former chief of staff Leandra English as deputy director of the agency, to serve as the bureau's acting director. Trump, however, appointed Office of Management and Budget Director Mick Mulvaney as the CFPB's interim director.
Information from a newly launched assessment tool shows that mortgage delinquency rates have dropped to levels not seen since before the recession, the Consumer Financial Protection Bureau said.
The Consumer Financial Protection Bureau filed a complaint against Aequitas Capital Management, Inc., over its lending to students of Corinthian Colleges. Aequitas was accused of violating the Dodd-Frank Act's prohibition against abusive acts and practices.
The proposed temporary increase in the HMDA reporting threshold for HELOCs would apply to institutions who make 500 or fewer such loans in the previous two years, compared to the current threshold of 100 such loans.
Data from a CFPB report shows that borrowers, taxpayers and student loan companies “would benefit from a clearer, more streamlined process to help previously defaulted borrowers succeed over the long term, and to ensure borrowers avoid default in the first place,” the bureau said.
In its brief, the CFPB argues that under binding precedent, the only relevant question to determining the constitutionality of an agency's structure is whether or not that structure is “of such a nature that it will impede the President’s ability to perform his constitutional duty...to take care that the laws are faithfully executed" (emphasis in the original).
The bureau's proposed rule would disrupt community bank lending because of its “extremely complex and prescriptive nature,” said executives from ICBA and CUNA. CFPB Director Richard Cordray defended the move as an attempt to eliminate debt traps.