Skip to main content

Court Upholds Mulvaney Appointment at CFPB

Nov 28, 2017
Mick Mulvaney arrived on his first day as President Trump’s appointment as Acting Director at the Consumer Financial Protection Bureau (CFPB)

A federal court sided with President Trump and allowed his appointment of Mick Mulvaney as acting director of the Consumer Financial Protection Bureau (CFPB) to remain in place.
 
U.S. District Court Judge Timothy Kelly upheld the Mulvaney appointment by citing the unprecedented nature of having a regulator—in this case, outgoing CFPB Director Richard Cordray—name his own successor rather than have the president fill the position. "Denying the president's authority to appoint Mr. Mulvaney raises significant constitutional questions," Kelly said.
 
Kelly dismissed arguments that Mulvaney cannot remain as director of the Office of Management and Budget while holding the CFPB position, adding that "nothing in the statutes prevents Mr. Mulvaney from holding both of these positions." A new full-time CFPB director will require confirmation by the Senate.
 
Earlier in the day, Mulvaney further asserted his role as acting director at the Consumer Financial Protection Bureau (CFPB) by taking control of the Twitter channel associated with that position. In his first tweet this afternoon on the Twitter handle @CFPBDirector, Mulvaney posted a photo of himself working over documents at a desk. Mulvaney’s first tweet said, “Busy day at the @CFPB. Digging into the details.”
 
While Mulvaney was at work in his office, Sen. Elizabeth Warren (D-MA) appeared at a small protest in front of the CFPB’s headquarters. “For six years this agency has fought for working people,” said Warren. “And now it’s time for us to fight for the agency.”
 
Absent from public view was Leandra English, Cordray’s handpicked appointee for the acting director’s role. However, the attorney representing English in her lawsuit to void the Mulvaney appointment, Deepak Gupta, admitted on CNBC today that English was not financing her own litigation, but he repeatedly declined to identify who was paying her legal fees. “I don’t think it’s appropriate for me to be talking about that on TV right now,” he said, adding that he was not representing English on a pro bono basis.
 
About the author
Published
Nov 28, 2017
In Wake Of NAR Settlement, Dual Licensing Carries RESPA, Steering Risks

With the NAR settlement pending approval, lenders hot to hire buyers' agents ought to closely consider all the risks.

A California CRA Law Undercuts Itself

Who pays when compliance costs increase? Borrowers.

CFPB Weighs Title Insurance Changes

The agency considers a proposal that would prevent home lenders from passing on title insurance costs to home buyers.

Fannie Mae Weeds Out "Prohibited or Subjective" Appraisal Language

The overall occurrence rate for these violations has gone down, Fannie Mae reports.

Arizona Bans NTRAPS, Following Other States

ALTA on a war path to ban the "predatory practice of filing unfair real estate fee agreements in property records."

Kentucky Legislature Passes Bill Banning NTRAPS

The new law prohibits the recording of NTRAPS in property records, creates penalties if NTRAPS are recorded, and provides for the removal of NTRAPS currently in place.