Mulvaney Pledges to Scrub CFPB Rules to Loosen Regulation

Mulvaney Pledges to Scrub CFPB Rules to Loosen Regulation
February 12, 2018 Marketing GrafWebCUSO

The CFPB intends to scrub its existing rules to determine if they strictly follow the Dodd-Frank Act and go no further, the agency said in a new Strategic Plan issued Monday.

“Indeed, this should be an ironclad promise for any federal agency; pushing the envelope in pursuit of other objectives ignores the will of the American people, as established in law by their representatives in Congress and the White House,” CFPB Director Mick Mulvaney said, in releasing the plan.

He added that “pushing the envelope also risks trampling upon the liberties of our citizens or interfering with the sovereignty or autonomy of the states or Indian tribes. I have resolved that this will not happen at the Bureau.”

Mulvaney said that the agency will review regulations that it has issued during the past five years with the goal of relieving what he believes is a burdensome regulatory regime.

Mulvaney said that the CFPB will “obtain input and feedback with respect to existing regulations, alternative approaches to regulation, and alternatives to regulation.”

The agency intends to “launch a program to review existing regulations or subparts of major regulations to assess opportunities for clarification, updating, and streamlining.”

Mulvaney has taken over an agency that critics—including credit union trade groups—have said has been too aggressive in enforcing Dodd-Frank and has not provided proper exemptions for financial institutions that are operating properly.

At the same time, critics have charged that Mulvaney already is rolling back much-needed consumer protections.

Mulvaney said that under his helm, the agency will, among other things, engage in rulemaking where appropriate to address unwarranted regulatory burdens.

Mulvaney’s strategic plan emphasizes efforts to examine and roll back regulations and is vastly different than the strategic plan developed by former Director Richard Cordray in 2013.

That strategic plan stated that “with the consolidation of existing and new authorities under one roof, the CFPB is now focused and equipped to prevent financial harm to consumers while promoting practices that benefit consumers across financial institutions.”

Mulvaney’s plan also says little about the agency taking enforcement actions against financial institution.

Democrats were quick to condemn the direction established by Mulvaney.

“Banks and payday lenders have enough lobbyists working on their behalf – the mission of the Consumer Financial Protection Bureau must continue to be fighting for working families,” said Senate Banking ranking Democrat Sherrod Brown of Ohio. “This Administration should swiftly nominate someone who will have full bipartisan support in the Senate and will protect consumers instead of special interests. In the meantime, Mr. Mulvaney must take steps to ensure that consumer laws are enforced.”