Mulvaney Exposed: Trump’s Potential CFPB Pick Bad for Consumers

Our friends at Allied Progress offer some insight into Mick Mulvaney, the likely replacement for Richard Cordray at CFPB:

Responding to widespread reporting that Office of Management and Budget Director Mick Mulvaney will be tapped by President Trump to also serve as acting director of the Consumer Financial Protection Bureau (CFPB), Allied Progress released the following statement and preliminary research findings exposing Mulvaney’s deep ties to CFPB-regulated industries, opposition to the CFPB’s central mission and structure, and long record of attempting to sabotage the CFPB’s important work.

Serving as director of the CFPB – even on an interim basis – isn’t about politics, it’s about fulfilling the Bureau’s mission to protect consumers from powerful financial institutions like big banks, credit card companies, debt collectors, payday lenders, and student loan processors,” said Karl Frisch, executive director of Allied Progress.

He continued, “Mulvaney has never supported the mission of the CFPB – in fact, he’s called it a ‘sad joke’ and said he doesn’t think it should exist. He has sponsored legislation and voted to sabotage the Bureau and render it incapable of holding industry accountable. He did all of this while taking nearly $1.3 million from key players in the CFPB-regulated financial sector.”

If he does end up taking on this role, he will have a statutory obligation to enforce the law which requires the CFPB to act in the best interest of consumers – full stop. If he fails to stand up to big banks and financial predators, we will use every tool at our disposal to ensure he is held accountable,” he concluded.

 

MORE on Mulvaney:

  • Mulvaney believes the CFPB is “a sad, sick joke,” calling it “one of the most offensive concepts I think, in a representative government,” and claimed “We have created… the very worst kind of government entity.” [Mick Mulvaney, “Nomination of Rep. Mick Mulvaney to be Director of the Office of Management and Budget,” Senate Budget Committee, 01/24/17]
  • Mulvaney was once overheard saying “‘I don’t like the fact that CFPB exists’” by a Senator. [Press Release, Chris Van Hollen, 02/03/17]

1.28 Million Reasons to be Suspicious

  • Mulvaney has taken in more than $1.28 million from key actors in the financial sector, which is regulated by the CFPB. This financial sector was by far Mulvaney’s highest-contributing sector. [Open Secrets Search for Mick Mulvaney, Center for Responsive Politics, accessed 11/16/17]

Attempts to Sabotage the CFPB

  • In 2015, Mulvaney co-sponsored a bill to repeal “the Consumer Financial Protection Act of 2010, which established the Consumer Financial Protection Bureau.” [HR 3118, United States House of Representatives, 114th Congress and HR 3118, United States House of Representatives, 114th Congress]
  • Mulvaney voted to subject the CFPB to the Congressional appropriation process, “replace the CFPB’s single director with a five-member board,” and “make it easier for a council of federal regulators to overrule the CFPB’s decisions.” [Wall Street Journal, 2/27/14; HR 3193, Vote #85, 2/27/14]
  • Mulvaney voted to “install a five-member oversight panel” to the CFPB rather than a “single director” and “make it easier to overturn regulations imposed by the bureau.” [Politico, 7/21/11; HR 1315, Vote #621, 7/21/11] 
  • Mulvaney voted to repeal the CFPB’s “exclusive authority to make rules affecting the financial industry.” [Tulsa World, 3/02/14; HR 3193, Vote #82, 2/27/14]

A Champion of Predatory Payday Lenders

  • Mulvaney voted against an amendment to protect the CFPB’s “oversight of payday lenders located on or near military bases, its efforts to help consumers deal with compromised credit cards, or its policing of fraud in fees charged for student loans or ATM withdrawals.” He also opposed a legislative fix to ensure that the CFPB would not be prevented “from informing consumers about personal information breaches, protecting servicemembers from payday lenders on or near military bases or from investigating and enforcing sanctions related to ATM or private student loan fees.”[Arizona Daily Star, 3/02/14; HR 3193, Vote #84, 2/27/14; Victoria Finkle, “House to Consider Bill Overhauling CFPB,” American Banker, 02/25/14; “February 2014 Vote History,” U.S. Representative Phil Roe, M.D., accessed 09/26/17 and “HR 3193,” House of Representatives Vote 84, 02/27/14]

Doesn’t Think Banks Need Pro-Consumer Regulations

Wait… There’s More

  • Mulvaney voted against prohibiting individuals from serving on CFPB advisory boards if they had been recently employed by any company that had warned for engaging in “predatory lending or fraud against veterans or service members.” [Victoria Finkle, Battle Over CFPB Funding Erupts Anew in House, American Banker, 04/24/15; “April 2015 Vote History,” U.S. Representative Phil Roe, M.D., accessed 09/26/17 and “HR 1195,” House of Representatives Vote 166, 04/22/15]
  • Mulvaney voted against adding language to the “Preserving Access to Manufactured Housing Act” “that would bar an individual or lender found to have engaged in unfair, deceptive, predatory, or abusive lending practices, or convicted of mortgage fraud to make use of the bill’s provisions.” [“Walker, Tillis vote yes on several bills,” News & Record, 04/19/15; “April 2015 Vote History,” U.S. Representative Phil Roe, M.D., accessed 09/26/17 and “HR 650,” House of Representatives Vote 150, 04/14/15]
  • Mulvaney voted against amending the “Access to Capital for Job Creators Act” “to ban individuals convicted of fraud related to financial transactions, including predatory lending to veterans, from generally advertising or soliciting non-publicly traded securities.” [“HOUSE PASSES BI-PARTISAN SMALL BUSINESS BILLS,” US Fed News, 11/04/11; “November 2011 Vote History,” U.S. Representative Phil Roe, M.D., accessed 09/26/17 and “HR 2940,” House of Representatives Vote 827, 11/03/11]
  • Mulvaney voted against amending the “anti-regulation” Red Tape Reduction and Small Business Job Creation Act to exempt laws related to predatory lending and consumer protections “from the bill’s moratorium on regulations.” [Larry Bivins, “Ribble anti-regulations bill faces tough road in Senate,” Green Bay Press-Gazette, 07/29/12; [“July 2012 Vote History,” U.S. Representative Phil Roe, M.D., accessed 09/26/17 and “HR 4078,” House of Representatives Vote 535, 07/26/12]
  • Mulvaney voted to “overturn…new rules” requiring financial professionals to put “their clients’ best interest first when giving advice on retirement investments like individual retirement accounts.” [“House upholds Obama “fiduciary rule” on retirement savings,” Associated Press, 06/23/16; H J RES 88, House of Representatives Vote 338, 114thCongress]

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