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CFPB Chief Urges Changes to CFPB Structure

Fri 06 Apr, 2018  /  by   /   Client Alerts

Michael Aphibal

04/06/18—The Consumer Financial Protection Bureau (CFPB), currently headed by Mick Mulvaney as Acting Director, released its Semi-Annual Report to Congress containing suggestions on ways to increase Congressional and Executive oversight over the CFPB.

The semi-annual report to Congress is mandated by the Dodd-Frank Act and must include nine elements. This current report covers the period from April 1, 2017 to September 30, 2017.

While the report itself is contains nothing out of the ordinary, what was remarkable was the introductory message from Mulvaney. In his message, he said the Bureau was “far too powerful,” “with precious little oversight,” and has a Director that exercises powers meeting the definition of tyranny.

“By structuring the Bureau the way it has,” Mulvaney said, “Congress established an agency primed to ignore due process and abandon the rule of law in favor of bureaucratic fiat and administrative absolutism.”

Mulvaney then suggested four legislative changes for the Bureau:

  • Fund the Bureau through Congressional appropriations;
  • Require legislative approval of major Bureau rules;
  • Ensure that the Director answers to the President in the exercise of executive authority; and
  • Create an independent Inspector General for the Bureau.

Since Mulvaney started leading the CFPB, he has looked for ways to reform the Bureau. In February, Mulvaney stated that, as Acting Director, he was going to proceed with “humility,” “moderation,” and “prudence.” And starting in January, the CFPB has issued 11 Requests for Information on aspects of the Bureau’s functions, including on enforcement processes, adjudications, supervision, and rulemaking.

CFPB Semi-Annual Report.