Mick Mulvaney may serve as the acting director of the CFPB, a federal judge ruled Tuesday evening.
Mulvaney, the director of the Office of Management and Budget, was President Trump’s choice to run the agency following the resignation of Director Richard Cordray.
Cordray had tried to install agency Deputy Director Leandra English as acting director before he resigned—citing a section of Dodd-Frank that says the deputy serves when the director is absent or unavailable.
English filed suit in an effort to block Mulvaney from taking control of the CFPB.
However, the Trump Administration argued that under the Federal Vacancies Act, the president has the power to appoint an acting agency head as long as that person already has been confirmed by the Senate for another position.
As OMB director, Mulvaney already has been confirmed by the Senate.
U.S. District Judge Timothy Kelly agreed with the administration’s argument and refused to issue a temporary restraining order blocking Mulvaney from taking over the agency.
It was unclear whether English would appeal the ruling.
Credit union trade groups have been hailing Mulvaney’s selection, saying that he likely will be more sensitive to the regulatory burden they face.
“CUNA has long pushed for a bipartisan commission to lead the CFPB, and the questions we’ve seen raised over the last few days only reinforce that need,” said CUNA Chief Advocacy Officer Ryan Donovan. “In the meantime, the president has appointed Mick Mulvaney acting director of the CFPB, who we have already reached out to, and we look forward to working with the bureau going forward on ways it can bring much needed regulatory relief to credit unions.”
