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President Obama Appoints Cordray as CFPB Director - First Order of Business is Non-Bank Regulation
Today, President Obama appointed Richard Cordray to run the Consumer Financial Protection Bureau. The appointment was made during the holiday Congressional recess and, while hotly contested over procedural grounds by many Republicans, the appointment may very well mean that Mr. Cordray will be leading the CFPB through at least the end of 2013.
Now that the CFPB has a director leading the agency, the regulatory entity may now begin the process of issuing regulations and effectuating some of the many changes mandated by the Dodd-Frank Act that were contingent upon the appointment of a CFPB chief.
After the announcement, Mr. Cordray stated that the first task on his list is to "begin working to expand our program to non-banks, which is an area we haven't been able to touch up until now." To that end, he has already posted on the CFPB blog that it is his opinion that non-bank mortgage lenders, servicers and payday lenders led a 'race to the bottom' and pushed aside responsible business lenders and it was made possible because of the lack of oversight of these non-banks. It seems likely that next wave of rules and regulations will be directed squarely at non-bank lenders of all stripes, including non-bank mortgage lenders.
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