Mulvaney Fires Entire CFPB Consumer Advisory Board

In a sweeping move, Consumer Financial Protection Bureau acting director Mick Mulvaney on Wednesday fired the bureau’s entire 25-member Consumer Advisory Board.

A CFPB official told the board — comprised of prominent legal advocates, financial services executives, and other industry stakeholders — on a conference call that they were being dismissed and could not reapply for their positions, according to a report from Politico.

“We’re doing our best now to execute on sort of what we will define as a different form of reaching out and engaging the community,” the official, policy associate director for external affairs Anthony Welcher, said on the call, per Politico; Welcher also added that the CFPB intends to convene a new board.

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The move strikes a serious blow to one of the bureau’s key organs, which is required by law to meet twice per year and “provide information on emerging practices in the consumer financial products industry, including regional trends, concerns, and other relevant information,” according to the board’s charter.

On the same day, the CFPB also dissolved the Community Bank Advisory Council and the Credit Union Advisory Council, Reuters reported.

Welcher in part described the decision to begin “streamlining” the CFPB and its multiple advisory boards was a way to save money.

Late last year, former CFPB director Richard Cordray used a meeting of the CAB to promote the bureau’s recent report on using reverse mortgages to delay Social Security — a strategy that the CFPB claimed wasn’t worth it for many borrowers.

“The report responded to the increasing promotion of this strategy by financial writers and those in the reverse mortgage industry, often without discussing the risks involved,” Cordray told the CAB in Tampa, Fla. last November. 

Cordray later resigned to pursue the Ohio governorship, with Trump appointee Mick Mulvaney taking his place after a contentious transfer-of-power period. Mulvaney then proceeded to take several steps to weaken the bureau’s power, including declining funding from the Federal Reserve, issuing a substantially shorter semi-annual report to Congress than his predecessor, and declaring the end of “regulation by enforcement” in testimony before the House Financial Services Committee.

At least one former member was upset at Mulvaney’s action.

“Firing current members of the advisory board is a huge red flag in this administration’s ongoing erosion of critical consumer financial protections that help average families,” Chi Chi Wu of the National Consumer Law Center told Politico.

Written by Alex Spanko

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  • Hopefully this is the beginning of the end for this rogue agency. Sure, consumers should be protected but they too, should be required to play with rules and not an unlimited power to levy fines at their sole discretion.

  • This is the best news I have heard for the entire financial industry since the inception of the Financial Regulatory Reform Bill (Dodd-Frank) since it’s inception in 2010!

    Though the move Mick Mulvaney made on Wednesday by firing the bureau’s entire 25-member Consumer Advisory Board makes a major statement to the entire financial industry!

    I am very exited about this bold move! Mick Mulvaney has set the stage and enthused us all in the financial world that we have been looking for now for a long, long time!

    The small community banks must be having parties all over the country this afternoon. The mortgage lending industry must be popping the Champagne Bottles about now and I know our industry, the HECM world can see the light at the end of the tunnel, finally!

    I know we are not completely there yet but this move by Mulvaney is reason to celebrate. Maybe, just maybe we will see some positive changes to the HECM down the road in the not to far future. Changes hopefully like in the PLF tables, for the better of course and others as well!

    I hope everyone realizes the true positive significance and impact this could have on all of us, it could be tremendous! This could also lead to the repeal of the Dodd-Frank Bill eventually?

    This is a happy Wednesday for us all, job well done Mick Mulvaney!

    John A. Smaldone
    http://www.hanover-financial.com

  • A Fox news reporter misspoke yesterday when she talked about the historic meeting between two dictators about to take place in Singapore. However there is a lot of truth in faux pas. Runaway capitalism only works on paper. Trump and his evangelical capitalist
    self centered brethren only know how to pillage, not build. To paraphrase Ghandi, In time all despotic regimes turn to dust and bankruptcy.

  • My question to my friends, the powers to be, at The Reverse Mortgage Daily post is, what does the comment by Mathius Gertz have to do with, “The acting director, Mick Mulvaney on Wednesday firing the bureau’s entire 25-member Consumer Advisory Board”?

    Please answer that question for me, I am sure the other readers of this article would like to know as well, unless I am missing something here??

    John A. Smaldone
    http://www.hanover-financial.com

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