Off the Record, On the Issues with John

CFPB news; Roger Heacock Scholarship; and a free regulatory update webinar.

By John Alexander, DakCU Director of Legislative & Regulatory Affairs

Trump Nomination Seen as Move to Keep CFPB Weak and Under Vought’s Control
President Donald Trump’s latest move at the Consumer Financial Protection Bureau (CFPB) is a procedural step with big implications for federal consumer oversight. On Nov. 19, Trump formally nominated Stuart Levenbach, a senior official at the Office of Management and Budget (OMB), to a five-year term as CFPB director. The White House and CFPB officials have described the move as “technical,” because it allows OMB Director Russ Vought to keep serving as acting CFPB director past December under the federal Vacancies Act, which extends acting service when a formal nominee is pending.

Since taking over as acting director in February, Vought has sharply reduced the bureau’s work. According to court filings and national reporting, the administration has frozen major parts of the CFPB’s supervision and enforcement activity and is preparing to cut roughly 90 percent of staff. At the same time, the administration has told the courts it believes the CFPB will run out of funds early next year and is legally barred from requesting fresh funding from the Federal Reserve, the bureau’s usual source of money.

The nomination is already facing political pushback. Sen. Elizabeth Warren (D-Mass.), who helped design the CFPB after the 2008 financial crisis, has criticized the move as an attempt to keep Vought in place while the administration works to close the agency. Key senators have not said whether they will hold a hearing on Levenbach, and several national outlets report that his confirmation is unlikely to advance. The Dakota Credit Union Association (DakCU) is watching these developments closely, as any long-term weakening or shutdown of the CFPB would shift how consumer-protection rules are written and enforced for financial institutions, including credit unions, nationwide.

The Roger Heacock Scholarship: A Gateway to the GAC Experience
DakCU is offering the Roger Heacock Scholarship again, giving two lucky Dakotans the chance to attend the Governmental Affairs Conference (GAC) in Washington, D.C., the largest annual credit union event of the year, held March 1-5. Hosted by America's Credit Unions, the GAC gathers thousands of industry leaders, advocates, and policymakers to discuss and influence the future of credit unions. This is a rare chance to represent the Dakotas on a national stage and shape the future of financial services while participating in one of the most impactful gatherings in the credit union movement. Get more information and apply here. 

FREE Year-End InfoSight360 Regulatory Update
Join the InfoSight360 team on Wednesday, Dec. 10 at 11:00 AM MT/12:00 PM CT for a 60-minute overview of key regulatory changes, including proposed CFPB updates to Regulation B and small business lending data collection. 
Please pre-register for the webinar here.
 
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