News in the ARM industry never stops. There’s not enough time to read everything, every day, and it can be tough to figure out what’s truly relevant. That’s where insideARM’s weekly recap comes in. Our weekly recap of top stories will give you the news we found most interesting last week and more importantly- why we think it’s relevant. Like seemingly all of February, last week revolved around the great elephant in the room- the CFPB and what’s to come from it (or what’s left of it).
On Tuesday we published an article from Ballard Spahr detailing legislation introduced to eliminate funding for the CFPB. The CFPB won’t simply disappear overnight, but cutting funding to zero would be a significant step in reducing the agency’s capabilities. Though this legislation may not go anywhere, this article provides insight into how republicans view the agency and one of the possible methods they might use to rein it in.
On Wednesday we brought you news from Orrick that, on the CFPB’s request, a lawsuit challenging its 2022 exam manual change that sought to classify discrimination as an “unfair” practice has been paused for 90 days. To be clear: no one is advocating for discrimination. However, like so much of what we saw from the Chopra led CFPB, the 2022 exam manual changes made sweeping and substantive changes without using the Administrative Procedures Act to fully vet the CFPB’s assumptions and requirements. The CFPB’s moves in this litigation will help stakeholders further understand the direction of the new CFPB.
On Thursday we highlighted Jonathan McKernan’s prepared statement ahead of his appearance before the Senate Banking Committee. The statement provided insight into how he views the CFPB and the manner in which he would steer the agency if confirmed as its director. The Chopra led CFPB was more interested in headlines than practical solutions. Mr. McKernan’s remarks indicate that perhaps we’ll see a renewed focus on issues and real solutions over headlines from the new CFPB.
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