The Consumer Financial Protection Bureau is not expected to be in a “holding pattern” in the long term, following the acting director leadership showdown, said Lucy Morris, partner in the Washington, D.C., office of Hudson Cook LLC.
“I don’t think things will stop, but I do think there will be a pause and a slowdown,” Morris said during Episode 4 of The Auto Finance Roadmap.
After Director Richard Cordray announced his resignation from the bureau, he appointed Chief of Staff Leandra English as the agency’s interim head. However, shortly before Cordray’s appointment, President Donald Trump named Mulvaney to the position — spurring confusion surrounding the future of the CFPB and its leadership.
Yesterday evening, U.S. District Court Judge Timothy Kelly ruled against English in her motion against Mulvaney.
Amid the leadership confusion, there was a “cloud” over the CFPB, Morris said. However, lenders are advised to continue to “take the long view to the CFPB, because it is an agency that has a lot of power, authority, and various tools,” she added. “I do think it is here to stay, no matter the director or commission.”
In terms of changes under new leadership, Morris does not think there will be “radical changes,” but there is likely to be a change “in the emphasis and priorities in terms of reforms,” she said. “I can envision potentially some procedural reform.”