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What’s Next at the CFPB?

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In the week since the election, President-elect Trump has been announcing Cabinet nominees and presidential appointments. The nominee for CFPB Director has not yet been announced, and, even when announced, will not be able to take office until confirmed by the Senate. Once President-elect Trump is sworn in on January 20, he will have the authority to fire Director Chopra, if he does not resign at the request of the incoming administration. Below are a few different scenarios on how this position could be filled.

CFPB Statutes: If no other action is taken, the CFPB statutes state that the Deputy Director is authorized to serve as the Acting Director when the position of Director is vacant.

Federal Vacancies Reform Act: Under the Federal Vacancies Act, either a government employee who already occupies a Senate confirmed or a senior level position in the department can be appointed by the President-elect to temporarily assume an agency position without being confirmed. The Act limits who can serve as an acting secretary or director and for how long they can serve in that capacity. Any administration official who has been nominated for the Senate confirmed position to be filled cannot be also the acting secretary or director. Additionally, officials who are appointed as acting secretaries or directors during a presidential transition period can only serve for a maximum of 300 days. These temporary heads are permitted to hold full powers of their respective departments.

Recess Appointments: In some circumstances not normally associated with a new president’s initial Cabinet appointments, the president may fill vacancies in executive branch positions through a recess appointment. The Constitution empowers the president to make this sort of limited-term appointment to fill a vacancy without Senate confirmation when that chamber is in recess. Recess appointments, however, expire at the end of the Senate’s next session. For recess appointments to occur, both chambers must be adjourned for more than ten days. While recess appointments have not been used recently, they are not uncommon to modern administrations. President Bill Clinton made 139 recess appointments while in the White House; President George W. Bush made 171; and President Barack Obama made 32, according to the Congressional Research Service.

Regular Order Senate Confirmation Process: The heads of the executive departments and the heads of all other federal agencies are nominated by the president and sent to the Senate for confirmation. The “advice and consent” process for Cabinet officials typically begins with a hearing in the appropriate congressional committee. If the nominee is approved by the committee, the nomination is sent to the full Senate for a simple majority vote. In its history, the Senate has confirmed 126 Supreme Court nominations and well over 500 Cabinet nominations.

Fun Fact: The political drama, “Advise & Consent,” based on the novel of the same title, provides a sensationalized version of the process, and was one of the last films allowed virtually uninhibited access to the U.S. Senate’s chamber and other spaces for filming.

What’s Next at the CFPB?
Nov 18, 2024

In the week since the election, President-elect Trump has been announcing Cabinet nominees and presidential appointments. The nominee for CFPB Director has not yet been announced, and, even when announced, will not be able to take office… Read the rest

Industry Expertise | Insurance Rates are Nearly Unaffordable. Here’s the Impact.
Nov 13, 2024

Industry Expertise” is sponsored content produced by AFSA’s Business Partners’ to provide thought leadership and best practices for AFSA member companies. For more information about this sponsored content opportunity, contact Dan Read the rest

Industry Expertise | Data-Driven Inventory Risk Management
Nov 12, 2024

Industry Expertise” is sponsored content produced by AFSA’s Business Partners’ to provide thought leadership and best practices for AFSA member companies. For more information about this sponsored content opportunity, contact Dan Read the rest

November White Paper | Reverse Mortgages
Nov 08, 2024

Last week, AFSA’s State Government Affairs released its November white paper on reverse mortgages and how legislation and regulations have imposed changes for consumers.

The origin of reverse mortgages began in 1987 when the Home Equity… Read the rest

AFSA State Election Watch 2024
Nov 08, 2024

Although the 2024 presidential race was the focal point of Tuesday’s general election, it was not the only key contest. Legislative elections took place in 44 states, and AFSA’s State Government Affairs team closely monitored those … Read the rest

Consequential Election for Credit?
Nov 07, 2024

While votes are still being tabulated in some House of Representatives races, both the Senate and the Presidential election have been called for Republicans. President-elect Donald Trump won both the Electoral College and the popular vote.… Read the rest

AFSA Responds to Treasury Report on Financial Inclusion
Nov 05, 2024

Last week, the Treasury Department released their Financial Inclusion Report. AFSA responded to the RFI at the time it was released, emphasizing action that AFSA members take to encourage financial literacy and suggested that further work… Read the rest

Featured Business Partner | Hudson Cook
Nov 04, 2024

The featured Business Partner for the month of November is Hudson Cook.

Established in 1997, Hudson Cook, LLP focuses its practice on laws related to financial services, banking and information privacy. In addition to the regulatory compliance

Read the rest

Marking the Equal Credit Opportunity Act (ECOA)
Nov 01, 2024

This week marked the 50th anniversary of the Equal Credit Opportunity Act (ECOA), a groundbreaking law that transformed financial access for women in the United States by prohibiting discrimination in lending practices. Enacted in 1974,… Read the rest

Bank-Fintech Is Good for Consumers
Oct 31, 2024

Yesterday, AFSA responded to a request for information from the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve.

The agencies are interested in learning more… Read the rest

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