Saying that the bureau has a sufficient reserve fund to pay for its operations, Acting CFPB Director Mick Mulvaney said Thursday that the bureau will request no money from the Federal Reserve for its operations during the Second Quarter of FY18.
Under Dodd-Frank, the bureau is funded by the Fed and for each quarter, former Director Richard Cordray requested money in a letter to Fed Chairman Janet Yellen.
For the first quarter of FY18, Cordray requested $217 million, according to a letter he sent to Yellen on Oct. 12.
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But in his letter to Yellen, Mulvaney, who also serves as director of the Office of Management and Budget, said that second quarter operations for the bureau are estimated to be about $145 million.
He said that at the start of the fiscal year, the bureau had $177 million on deposit at the New York Federal Reserve Bank.
"Simply put, I have been assured that the funds currently in the Bureau Fund are sufficient for the bureau to carry out its statutory mandates for the next fiscal quarter while striving to be efficient, effective and accountable," Mulvaney wrote.
He said that he does not see the need for such a large reserve, particularly since the Fed has never denied a request for funds by the bureau.
"It is my intent to spend down the reserve until it is of a much smaller size, while still allowing the bureau to successfully perform its functions, before making an additional financial request of the board," he wrote.
Mulvaney, who as a House Republican from South Carolina opposed the CFPB's operations, already is leaving his mark on the agency. He has signaled that the CFPB might revisit its controversial payday lending rule. And he has announced that the agency intends to solicit public comment on a variety of agency functions.
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