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One question is whether the CFPB’s director, Richard Cordray, will stay in place until his current term expires in July 2018.
LAS VEGAS — Donald Trump’s presidential win is expected to bring significant changes to the way the Consumer Financial Protection Bureau operates, Chris Stinebert, CEO of the American Financial Services Association, told the National Remarketing Conference here today.
“There is going to be a regulatory easing” in Washington, and the agency will be affected, he said.
“We’re very hopeful — there’s no reason it can’t be done in the first 100 days — there will be a freeze on all new regulations,” he said.
Stinebert predicted that “Obamacare,” formally named the Patient Protection and Affordable Care Act, would be amended, not repealed. Portions of it that enjoy widespread support, such as keeping dependent children up to age 26 on their parents’ coverage and not allowing insurers to reject applicants due to pre-existing conditions, will remain.
One question is whether the CFPB’s director, Richard Cordray, will stay in place until his current term expires in July 2018.
“His life is not going to be great after Jan. 20” when Trump is inaugurated, Stinebert said.
In addition, Cordray is widely believed to be planning to run for governor in Ohio in 2018. “Does he want to get in a fight and tarnish his image before going back to Ohio?” Stinebert asked rhetorically. “I don’t see hanging around until July 2018 as the best choice that Director Cordray could take.”
Stinebert said the lame-duck session of Congress may well take action on Senate bill S. 2663, which would rescind the agency’s guidance regarding disparate impact and the use of dealer reserve to pay dealerships for arranging financing for auto shoppers.
He then discussed several other matters relating to the CFPB and proposed regulations:
• Arbitration rules. “If Trump understands one thing, he understands class-action lawsuits,” Stinebert said. Business associations such as Stinebert’s have opposed proposed arbitration rules, and he said, “I can’t imagine not having success on that.”
• Proposal on small-dollar loans. This proposed regulation does not apply to vehicle loans, but it has been unclear whether it would apply to ancillary products sold to car buyers or even the question of a trade-in when the owner has negative equity in the vehicle. “Today, I’m not even sure we’re going to see the small-lending rule,” Stinebert said.
• Enforcement actions. Every one of the agency’s enforcement actions has been done in cooperation with the Department of Justice. Whether a Trump-appointed Attorney General would continue such cooperation remains to be seen.
• Telephone rules and other proposals. “All these things are now on hold,” Stinebert said.
How Trump's election could limit the CFPB
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