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Embattled Director Cordray to Step Down from CFPB
Thursday, November 16, 2017 6:50 AM

Richard Cordray announced Wednesday that he will resign as director of the CFPB by the end of November, a move that will allow President Trump to nominate a new director who would have to be confirmed by the Senate. A nominee of then-President Barack Obama, Cordray clashed frequently with representatives of financial institutions.

As advocates for credit unions in Arkansas, Oklahoma, and Texas, Cornerstone Credit Union League appreciates the CFPB's mission to ensure consumers are treated fairly. However, it is hoped that the CFPB's new director will seek to better understand the unique financial partnership between consumers and credit unions whose historical track record of protecting consumers is well documented.

"Cornerstone has met regularly with CFPB since its inception to discuss issues of importance to credit unions, and our advocacy efforts have brought about some positive changes," said Cornerstone Credit Union League President/CEO Caroline Willard. "We hope that under the leadership of a new director, the CFPB will acknowledge the unique cooperative structure of credit unions and tailor future rules to reflect that difference. As always, we will work diligently on behalf of credit unions to eliminate unnecessary regulatory burdens and minimize negative impacts on not only credit unions, but consumers as well."

The status of the CFPB director is hung up in federal court. A panel of the U.S. Court of Appeals for the District of Columbia has ruled that the makeup of the agency is unconstitutional, since it is run by a single director, which only can be removed for cause. However, the agency has appealed that ruling to the full DC Court of Appeals, which has heard arguments in the case but has not issued a ruling. In addition, the confirmation of a new director is likely to result in a political battle between president Trump and the Senate.