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Posts Tagged ‘recess appointment’

American Banker Interviews Richard Cordray

August 20th, 2013 Comments off

While bankers fear the Consumer Financial Protection Bureau (CFPB) under Director Richard Cordray may be too aggressive, he assures them he is balancing safety and soundness with consumer protection. In a wide-ranging interview with American Banker, he says despite the fight over his initial recess appointment, he and his staff prioritized their mission: Protect and empower consumers in a financial marketplace. He says the Bureau recently received its 200,000 complaint, a statistic he says indicates the protection is being effective, as MHProNews has learned. Responding to a question regarding the biggest challenges of the agency, he referred to the four D’s: Deceptive and misleading marketing of products; debt traps like payday loans and deposit-advance products that can garner up to 390% interest; discrimination—treat all consumers the same; and dead ends, like debt collection, loan servicing, and possibly student-loan servicing and other instances in which the consumer is between two institutions. For the complete interview, please click here.

(Image credit: Consumer Financial Protection Bureau)

Cordray Confirmed to Head Consumer Financial Protection Bureau

July 17th, 2013 Comments off

Following two years of uncertainty, the U S. Senate confirmed Richard Cordray as director of the Consumer Financial Protection Bureau (CFPB) by a 66-34 vote. While an outstanding lawsuit questions the original recess appointment of Cordray to the post by President Barack Obama, the confirmation solidifies the director’s position as a host of new rules affecting the marketplace is set to take affect in Jan. 2014. Today’s vote eases concerns over what might have happened if Cordray had been forced to step down regarding current and past examinations, nonbank supervision and rules finalized during his term. Allyson Baker, a partner at Venable law firm who once worked for the CFPB, says “I think you now have some certainty that the work the agency has done so far will continue.” As for lenders and servicers, as MHProNews has learned from HousingWire, she adds, “It allows them to say this is what it’s going to look like, and now we can move forward because we have some certainty in the marketplace. Certainty is useful if you are trying to structure your business operations and working with fairly new paramaters.”

(Photo credit: abcnews–Richard Cordray)

Testimony from Director Cordray not Acceptable

April 24th, 2013 Comments off

The Manufactured Housing Association for Regulatory Reform (MHARR) informs MHProNews Jeb Hensarling, (R-TX) Chairman of the House Financial Services Committee, says he cannot accept testimony from the Consumer Financial Protection Bureau’s (CFPB) director Richard Cordray on the semi-annual report since he is not a valid director. A federal appeals court has ruled that President Obama’s recess appointment of Cordray is constitutionally invalid. He says until there is a valid director, “The committee intends to continue to conduct rigorous oversight of the CFPB’s activities, and will expect the CFPB’s cooperation in those efforts, including making other employees available to testify at committee hearings and responding fully to committee requests for documents and information.” Commenting on members of Congress who want to make the bureau accountable for its budget, staff and activities, he says, “No other regulator has more influence over the daily financial lives of Americans. Dodd-Frank gives the CFPB director the power to decide what financial products and services will – and will not – be available to American consumers and how much they will have to pay for them.” Chairman Hensarling states the bureau should be run by a bipartisan commission, and notes President Obama, Dodd-Frank authors former Rep. Barney Frank and former Sen. Chris Dodd, and Sen. Elizabeth Warren, credited with the idea of the CFPB, all originally wanted a commission to run the CFPB.

(Photo credit: Wikipedia–Rep. Jeb Hensarling)

Cordray Nomination on the Line

March 12th, 2013 Comments off

HousingWire reports during a Senate Banking Committee hearing concerning the nomination of Richard Cordray to head the Consumer Financial Protection Bureau (CFPB) for a second term, some committee members put Cordray on the hot seat. They grilled him about his operation of the agency and what would happen to the funds if his appointment is invalidated. Meanwhile, one panel member pointed out the CFPB received high marks from the banking industry for its handling of the the qualified mortgage (QM) rule. As MHProNews has learned, newly-elected Sen. Elizabeth Warren (D-Mass.), who set up the CFPB, told Cordray he has earned his nomination. Cordray was a recess appointment by President Obama, and did not originally receive Senate confirmation.

(Photo credit: ABC News–Richard Cordray)

Rep. Senators want to Alter CFPB

February 19th, 2013 Comments off

The Manufactured Housing Institute (MHI) informs MHProNews Sen. Jerry Moran (R-Kan.) introduced legislation to replace the Consumer Financial Protection Bureau (CFPB) director with a five-member commission, and make it accountable to the same appropriations as most other federal agencies. House Financial Services Committee Chairman Jen Hensarling (R-TX) indicated that the panel would also be working to advance similar legislation during the 113th Congress, especially since there is legal maneuvering questioning the legality of Richard Cordray’s recess appointment as head of CFPB. Additionally, Senate Minority Leader Mitch McConnell (R-Ken.) and 42 other Republican Senators sent a letter to President Obama indicating they intend block the confirmation of any nominee to head the CFPB until the structure of the agency is altered.

(Image credit: Consumer Financial Protection Bureau)

AGs from Eight States Join Suit

February 18th, 2013 Comments off

American Banker informs MHProNews eight additional state attorneys general have requested to join a lawsuit originally filed by a Texas community bank and two conservative organizations challenging the constitutionality of the Dodd-Frank Act and the Consumer Financial Protection Bureau (CFPB). The suit focuses on the Orderly Liquidation Authority in Title II of Dodd-Frank, which permits the secretary of the Treasury to seize the assets of a financial institution without advanced warning. Texas Attorney General Greg Abbott says, “Under this law, unelected federal bureaucrats are empowered to unilaterally liquidate financial institutions in which the state invests taxpayer dollars. This unprecedented regime deprives the State of Texas of basic due process rights and places taxpayers’ resources at risk.” The lawsuit also challenges the structure of the CFPB, the president’s right to make a recess appointment to head the agency, and the authority of the Financial Stability Oversight Council. The attorneys general from Oklahoma, South Carolina and Michigan joined the case last Sept. The suit was originally filed in U.S. District Court for the District of Columbia in June, 2012. The defendants, essentially every federal financial regulator, have asked for dismissal of the case.

(Image credit: National Equity Fund)

Senate Banking Committee’s new Ranking Member

February 6th, 2013 Comments off

MHProNews has learned from nationalmortgagenews Idaho Republican Senator Michael Crapo, who is becoming the ranking member of the Senate Banking Committee, enumerates his top priorities in his new position as revising portions of the Dodd-Frank Act; paring down GSEs role in the mortgage industry and moving to a private sector solution; facilitate capital formation; and reform of the Federal Housing Administration (FHA). While Sen. Crapo has no personal objections to Richard Cordray as director of the Consumer Financial Protection Bureau (CFPB), he does object to the recess appointment of Cordray, and to the structure of the CFPB.

(Photo credit: washingtontimes)

Cordray Out the Doorway?

January 29th, 2013 Comments off

The MHI says the U. S. Court of Appeals for the District of Columbia district ruled the Obama administration did not have the authority to fill three recess appointments to the National Labor Relations Board (NLRB) Jan. 4, 2012. That was the same day President Obama made a recess appointment for Richard Cordray to be director of the Consumer Financial Protection Bureau (CFPB). The State National Bank of Big Spring (Tex.) has already filed suit challenging the constitutionality of Cordray’s appointment, which the NLRB ruling may strengthen. Since his recess appointment term expires at the end of 2013, President Obama nominated Cordray for confirmation again. Although he has been serving as director, if the legal challenge holds, his fate will be in the hands of Senate Republicans who have opposed his nomination because they want to change the CFPB’s structure. Meanwhile, Cordray gets high marks from David Stevens, president and CEO of the Mortgage Bankers Association. “He and his team are accessible, they’re open, they listen to all stakeholders clearly,” says Stevens. Tom Feltner, director of financial services for the Consumer Federation of America says, “The bureau has proven to be an effective regulator.” Republicans are not convinced. House Financial Services Committee Chairman Jeb Snarling (R-TX) says the NLRB ruling means Cordray’s appointment was unconstitutional, unlawful, or both. As MHProNews has learned, a separate lawsuit is challenging the Dodd-Frank financial reform law, including Cordray’s appointment.

(Photo credit: ABCNews)

Committee Chair Spears CFPB

January 11th, 2013 Comments off

The House Financial Services Committee tells MHProNews that Committee Chairman Jeb Snarling, in his response to the Consumer Financial Protection Bureau (CFPB)’s Qualified Mortgage and Ability to Pay rules, says the CFPB has an impossible, dangerous mission and that attempted solutions may have unintended consequences. He asserts, “ Impossible because the CFPB is a big government bureaucracy in Washington attempting to determine which mortgages are appropriate for 100 million Americans, each of whom have their own personal circumstances that the CFPB knows nothing about. Dangerous because the CFPB has been given vast, unprecedented and unchecked power, all delegated to a single director whose alleged recess appointment by the President is legally questionable.” Noting it was government policies that encouraged financial institutions to loan people money to buy homes they could not afford, now it is government regulations telling them “not to do what the government was telling them to do before.” He says the committee will closely watch financial institutions to determine their ability to compete as well as their impact on consumers’ ability to access credit, especially in smaller markets.

(Image credit: House Financial Services Committee)

Challenge to Corday’s Appointment Lacks Standing

November 28th, 2012 Comments off

A complaint filed last June by a Texas bank and two non-profit organizations challenged the validity of Richard Cordray’s recess appointment as head of the Consumer Financial Protection Bureau (CFPB) because the Senate was technically not in recess, according to HousingWire. The bank, State National, contends the CFPB’s Unfair, Deceptive and Abusive Acts or Practices (UDAAP) caused the bank to leave the mortgage lending business. The CFPB filed a motion to dismiss the case because the bank lacks standing, meaning State National cannot show sufficient connection to and harm from the appointment, nor does it have authority to challenge the constitutionality of a recess appointment. MHProNews has learned several governmental agencies, including the Treasury Department as well as the Securities and Exchange Commission, agree the bank and the other two organizations do not have standing.

(Image credit: CNNMoney)