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Mulvaney: CFPB to Enforce, ‘Not Become the Law’

Speaking at an industry conference this week, Mick Mulvaney, Acting Director of the Consumer Financial Protection Bureau, outlined the bureau’s ongoing shift away from “regulation by enforcement” and toward more regulatory clarity.

During a keynote speech at the 2018 REALTORS Legislative Meetings & Trade Expo on Tuesday of this week, Mulvaney addressed the bureau’s new approach to regulation by enforcement in direct terms. “We aren’t doing it anymore,” Mulvaney told the crowd. He continued, adding, “It’s a fairness issue, if you’ve done something for so long and the government wants to change the rules, shouldn't the government have to tell you they are changing the rules before they fine you?”

Touting a “back to basics” approach for the bureau under his leadership, Mulvaney said he was working to ensure that the bureau provided clarity about what is and is not illegal, and criticized the bureau’s direction under the Obama administration. “We are not out to make you look like a bad guy if you are not,” Mulvaney said. “We are out to enforce the law, not become the law.”

“NAR is encouraged by the new direction of the bureau under Director Mulvaney’s leadership, specifically, plans to decrease unnecessary regulatory burdens in line with the current administration,” said NAR President Elizabeth Mendenhall. “NAR has been supportive of legislation that promises to reduce burdensome requirements, including for smaller creditors, to facilitate increased lending, and we are hopeful such changes will move through Congress soon.”

Leadership of the CFPB was thrown into question last fall, following the surprise resignation of Director Richard Cordray. On his way out, Cordray named his Chief of Staff, Leandra English, as Deputy Director of the CFPB. However, President Trump then appointed White House Budget Director Mick Mulvaney to head the CFPB. This kicked off a series of legal challenges between the two over who was the rightful leader of the organization, with Mulvaney eventually prevailing.

Last week, ex-CFPB Director Richard Cordray officially clinched the Democratic nomination for the governorship of Ohio. Campaigning on both his history at the CFPB and a promise to focus on economic matters affecting Ohioans, Cordray defeated five other contenders during the Ohio Democratic primary, including former Congressman and Cleveland Mayor Dennis Kucinich.

About Author: David Wharton

David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years' experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at David.Wharton@theMReport.com.

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