Banking Committee Recommends Confirming Kraninger as CFPB Chief

The Senate Banking Committee on Thursday narrowly recommended that the Senate confirm Kathy Kraninger as CFPB director.

The vote, 13-12, was along party lines, with all Republicans supporting the Trump Administration’s nominee and all Democrats vehemently opposing it. The nomination now goes to the full Senate, where leaders have not announced a timetable for a vote.

In an opening statement, Senate Banking Chairman Mike Crapo (R-Id.) said Kraninger is well qualified for the job.

“Given her depth and diversity of public service experience, I have the utmost confidence that she is well prepared to lead the bureau in enforcing federal consumer financial laws, protecting consumers’ sensitive personal financial information, expanding access to credit, and making the Bureau more transparent and accountable,” he said.

But Democratic criticism of Kraninger focused on two issue—the Trump Administration’s attitude toward the bureau and Kraninger’s possible role in setting the immigration policy that led to children being separated from their parents and the relief effort following the Puerto Rican hurricanes.

As an associate director at the Office of Management and Budget, Kraninger oversees the Department of Homeland Security’s budget.

Kraninger has refused to answer Democratic questions about her role in those policies—a decision that did not disturb Crapo.

“As I said at her nomination hearing in response to questions about members’ document request, I would not expect this administration nor any administration to release documents related to a deliberative process,” he said.

Committee ranking Democrat Sherrod Brown did not buy Crapo’s explanation, saying that Kraninger has no experience in finance or consumer protection. “What she has told us is that she won’t be an independent advocate for American consumers – the entire job she is supposed to do.”

He said she has indicated that she agrees with how Acting CFPB Director Mick Mulvaney is running the bureau.

“Mr. Mulvaney has dropped lawsuits against payday lenders and gutted the offices that protect against discrimination in lending and fraud in student loans, Brown said. “He’s blocked hardworking career staff from doing their jobs and writing rules that would help consumers.”

Sen Jack Reed (D-R.I.) said he has no confidence that Kraninger will reverse Mulvaney’s decision to stop examining financial institution compliance with the Military Lending Act as part of their regular examinations. He said the MLA must be enforced, adding that it has been effective in helping servicemembers.

“While they’re serving overseas, they should not be exploited here,” Reed said.

Sen Elizabeth Warren (D-Mass.) blasted Kraninger for refusing to answer questions about her role in the immigration and hurricane relief policies.

“If she is so proud of her actions, why wouldn’t she describe them?” Warren asked.

However, credit union trade groups said they are pleased that the committee recommended that Krninger be confirmed.

“We hope the Senate will act quickly to consider her nomination,” CUNA President/CEO Jim Nussle said

Both trade groups continued to push Congress to transfer CFPB governance from a single-director agency to one that is run by a commission.

“We still believe the best path forward is to eventually establish a bipartisan commission at the bureau to ensure its decision making is as fair and transparent as possible,” NAFCU President/CEO B. Dan Berger said. “Additionally, we will continue to advocate for a tailoring of regulation at the bureau to reign in bad actors, while exempting credit unions from burdensome regulations.”