Donald Trump’s Presidency Could Mean Serious Changes for CFPB

As a result of a recent D.C. circuit court ruling, a Donald Trump Administration may mean that CFPB Director Richard Cordray may not serve out his full term which is set to end July 2018. The President-elect has not outlined any specific plans to make changes at the agency. However frequent clashes with its architect, Sen. Elizabeth Warren, and an announced proposal to dismantle Dodd-Frank have led some to speculate that the agency will be a key target for reform.

A major driver of this speculation is a recent ruling by the U.S. Court of Appeals for the D.C. Circuit which rolled back some of the CFPB’s autonomy from the White House. Prior to the ruling, the agency’s Director could only be removed “with cause.” But following the court’s decision, the President was given the authority to remove the Director “at will at any time.” Given this development some consider it likely that once in office, Trump will remove Cordray as Director.

It is not yet clear whether the President will continue to have this authority by the time he occupies the Oval Office. According to a recent article in American Banker, some observers believe that the CFPB is likely to appeal the District Court’s decision and request it be stayed until another verdict is provided. Benjamin K. Olson, partner at Buckley Sandler and a former CFPB deputy assistant director for the Office of Regulations, explains that “as long as the PHH decision is stayed pending further appeals, the director can only be removed for inefficiency, neglect of duty, or malfeasance in 

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