Sources close to the LSCU say it has been a busy week in Washington, D.C., with important developments that have some impact on credit unions. Notably, Mick Mulvaney, acting director of the Consumer Financial Protection Bureau, testified before both House and Senate Committees. In the House hearing, Mulvaney came out in favor of House Financial Services Chairman Jeb Hensarling (R-TX) making changes to S. 2155. This is potential good news for credit unions as there is a House bill to delay RBC for two years that could be added to the Senate legislation.
Also of interest, the CFPB announced yesterday it’s taking suggestions on changes to the consumer complaint portal. This was very controversial when Cordray instituted it back in 2014, and now there may be an opportunity to suggest reforms. Read more here, and we will update you as more information is available.
Another important issue was a hearing in the lawsuit challenging Mulvaney’s appointment to CFPB. According to a Hill source and an administration source, the hearing did not go well for the administration. The panel of judges appeared to cast doubt on the legality of Mulvaney’s appointment. However, they stopped well short of saying that Deputy Director Leandra English (the plaintiff) should be named as director. This potential dispute could compel Trump to act more quickly to nominate a full-time director to ensure English would not take office.
In one other matter of note, ICBA supposedly told the bankers attending their D.C. conference Wednesday that Mark McWatters, current NCUA chairman, was still a possibility as a nominee to CFPB director, though in January, their negative stance had seemed firm.
The League’s Advocacy team will keep you updated as more important information is learned.