Critics Blast Kraninger as Unqualified for CFPB Job
Credit union and banking trade groups are more supportive of the possibility of Trump's choice leading the agency.
Kraninger, an associated director at the Office of Management and Budget, had not been mentioned as a possible nominee until this weekend, when a White House official confirmed rumors of her selection.
Surprisingly, some of the harshest criticism came from a conservative.
“This nominee is not qualified for this position,” said J.W. Verret, an assistant professor at the Antonin Scalia Law School at George Mason University and a former staffer on the House Financial Services Committee.
He said that Kraninger has no experience in consumer finance and financial regulation, a criticism also leveled by consumer advocates.
“The Senate should immediately hold confirmation hearings and reject this inexperienced candidate and demand that the President nominate someone qualified who has a history of making consumer protection a top priority,” said Yana Miles, senior legislative associate at the Center for Responsible Lending, a consumer group.
The center is an affiliate of the Self-Help Credit Union.
“Her apparent lack of experience in consumer finance, coupled with the Administration’s hostility to consumer protection, raises questions about her qualifications to lead such an important agency,” said House Democratic Leader Nancy Pelosi of California.
The House, of course, has no role in the confirmation process; the Senate confirms nominees.
Credit union trade groups have said that they hope that Kraninger, if confirmed, will continue the policies of her boss, OMB Director Mick Mulvaney, who has been serving as CFPB director since the resignation of former Director Richard Cordray.
Bankers have echoed those positions.
“Her experience at OMB alongside Acting CFPB Director Mick Mulvaney, along with her years of work on Capitol Hill and in the executive branch, would serve her well in this important position,” said Rob Nichols resident/CEO of the American Bankers Association “We trust she shares our interest in ensuring consumers have access to the financial products they want and need, while maintaining the protections they deserve.”
Kraninger is the associate director for general government at OMB and oversees the budgets for several executive branch agencies. Prior to joining OMB, Kraninger served on the staffs of the House and Senate Appropriations Committees.
Mulvaney, who has been serving as acting CFPB head, could only serve until June 22, unless a nominee is submitted to the Senate. Once Kraninger’s nomination is sent to the Senate, Mulvaney may serve as acting director until she is confirmed as director. However, Mulvaney’s appointment and Kraninger’s nomination expires at the end of the year if she is not confirmed.
And next year, when a new Congress takes office, Trump may reappoint Mulvaney as acting CFPB director for another 220 days. After that, he would have to nominate someone and Mulvaney could stay in the office until that person is confirmed.
Republicans will only need 50 votes to confirm Kraninger, but Sen. John McCain (R-Ariz.) has been undergoing treatment for brain cancer and is unlikely to be available for the confirmation vote.
Miles sees a sinister motive in Trump’s having nominated someone with little experience in consumer finance.
“This is a scheme to keep Mick Mulvaney at the helm of the CFPB, so he can continue working on behalf of the payday lenders,” Miles said. “Mulvaney has already publicly stated his intention to unlawfully stay at the consumer bureau until the end of the year or longer. If the Administration was serious about protecting consumers, the President would have nominated someone qualified last January instead of someone unqualified in June–just days before the CFPB nomination deadline.”
Verret acknowledged that his colleague at the George Mason University Law School, Todd Zywicki, was one of the leading candidates for the job. At one point NCUA Chairman J. Mark McWatters also was mentioned as a possible nominee.
“Every other candidate that was mentioned was more qualified,” Verret said.
But John McKechnie, senior partner at Total Spectrum said Kraninger has a good reputation. “Even though she was a relatively late entry into the [CFPB] derby, several congressional sources said Kraninger was very serious, and commented on her strong reputation and success in other federal appointments,” he said.
He agreed that the confirmation process is likely to be grueling.
“In this environment, naming somebody to be a postmaster is controversial, so you can imagine what this is going to be like,” he said.