CAPITAL ADJUSTERS REPORTS
Information on Repossession and Remarketing Issues
Russ DeWitt, Editor
President, Capital Adjusters, Inc.
Past President, Nat'l Finance Adjusters
American Recovery Association
Recovery Specialist Insurance Group
Calif. Assn of Licensed Repossessors
Certified Asset Recovery Specialist
Certified Recovery Agent
Cordray Resigns from CFPB
Cordray Resigns from CFPB
REPOSSESSIONS & REMARKETING
Washington, DC - 15 November 2017 - Richard Cordray, the director of the Consumer Financial Protection Bureau ("CFPB"), announced Wednesday that he plans to step down from that post by the end of the month. Cordray's term was otherwise set to expire in July 2018.
So what does this mean for the collections and repossession world?
get too excited. Big ships move slowly and even with a more
conservative appointment to this post by President Trump, changes to
existing policies and procedures, that have been six years in the
making, are likely to be slow to develop.
has been talk of the appointment of Treasury
Secretary Steven Mnuchin to this position, but the White House has
been tight lipped as of now. Regardless of the future appointment,
the White House has been critical of this previously autonomous
regulating body that has operated, as designed, with impunity and
without congressional oversight.
if a Trump appointment should begin to dismantle or weaken the powers
of the CFPB, it is unlikely that many, if any of the lenders
the punitive scrutiny of this body will reverse their previous
policies and procedures on vetting, fees and security that were put
in place as they are now considered “best practices” by most
banking regulators and are unlikely to change.
voluntary departure had been predicted for some time based on
speculation that he would return to Ohio to run for governor. There
also had been the possibility that President Trump might fire him.
federal appeals court decision in October 2016 that the CFPB was
unconstitutionally structured due to the excessive autonomy
Dodd-Frank granted its director, given that the president can only
fire him for cause, has hung like a cloud over Cordray and the
bureau. The appeals court is reconsidering its decision.
immediate question is who will succeed Cordray. Under the Vacancies
Act, a Senate-confirmed agency head such as the CFPB’s director
must be replaced by another Senate-confirmed appointee.
are no other such appointees at the CFPB, so the president will have
to reach elsewhere in the executive branch to find someone to serve
as acting director of the CFPB until a new permanent director can be
nominated and confirmed by the Senate.
an acting director is an important decision the president must
quickly make as the CFPB’s many critics want to see broad-ranging
reforms quickly implemented at the agency. Those reforms would
encompass both revising the rules the agency has adopted as well as
the manner in which they are enforced.
Source: The Hill