Senate Confirms Kraninger As CFPB Director, CU Trades React
After more than a year, the CFPB has a leader confirmed by the Senate.
The Senate on Thursday narrowly confirmed Kathy Kraninger as director of the CFPB.
She replaces Office of Management and Budget Director Mick Mulvaney, who has been acting director since Richard Cordray resigned to run for Ohio governor.
The confirmation vote was close, 50 to 49.
Kraninger, an associate director at OMB, is expected to continue the pro-business direction Mulvaney adopted after Cordray, an advocate of strict regulation, left office.
Kraninger had to be confirmed during this lame duck session to avoid having the nomination expire at the end of the year. In that case, Trump would have had to resubmit a CFPB candidate for confirmation when the 116th Congress convenes next year.
Democrats have vehemently opposed the nomination, saying she is unqualified for the job. Credit union trade groups have supporter Kraninger but have renewed their call for the CFPB to be converted to a commission.
During a conference call with agency advisory board members Thursday, Mulvaney said he had not been involved in Kraninger’s selection.
He said that if he had been, he could not have found anyone more qualified for the job. He said he expects the transition to be “as seamless as possible.”
Indeed, Kraninger said during her confirmation hearing earlier this year that she could not single out any action Mulvaney has taken that she would have opposed.
In a letter she sent to colleagues as the Senate began consideration of Kraninger’s nomination, Sen. Elizabeth Warren (D-Mass.) sharply criticized the choice.
“Despite being nominated to serve as the country’s top consumer protection official, Ms. Kraninger has admitted she has no relevant consumer finance experience,” she said.
In addition, Democrats have criticized the choice, saying that at OMB, Kraninger was responsible for implementing the Trump Administration’s policy of separating children from their parents at the U.S. southern border and for the recovery efforts following Hurricane Maria.
“A vote to confirm Ms. Kraninger to a five-year term as CFPB Director is a vote to defang the consumer watchdog that returned nearly $12 billion to consumers before Mr. Mulvaney assumed control,” Warren said.
Following the vote, CUNA President/CEO Jim Nussle said he was optimistic about Kraninger’s choice.
“We’re pleased to have a new permanent director leading the BCFP, as credit unions and other parts of the financial services marketplace need stability at the bureau,” he said. “We look forward to working with Ms. Kraninger and her staff on ways to help credit unions serve members better.”
NAFCU President B. Dan Berger was optimistic as well
“NAFCU is consistently engaged with the bureau on issues critical to the credit union industry and we look forward to working with Director Kraninger to ensure a healthy regulatory environment in which credit unions can grow, thrive and successfully serve their membership,” he said.
As acting director, Mulvaney launched a review of virtually all of the agency’s policies. And in the coming months, the CFPB is expected to revise its controversial payday lending rules,
Supporters of the rules, adopted during Cordray’s tenure, say the rules will help curb predatory lending by unscrupulous businesses.
Opponents have questioned whether the rules go too far and will hamper the ability of people to obtain credit.