WASHINGTON, D.C. — Richard Cordray is staying as director of
the Consumer Financial Protection Bureau, the agency that has been intensifying
its regulation of vehicle financing since the spring.

The U.S. Senate confirmed Cordray to remain at the position
late Tuesday, stirring mostly positive reaction from industry associations as
well as lawmakers who wanted the vote taken much earlier.

"Richard Cordray's confirmation as director of the Consumer
Financial Protection Bureau (CFPB) puts many questions about the bureau to
rest," said Chris Stinebert, president and chief executive officer of the American
Financial Services Association. "Yet questions remain about several bureau
practices, such as the methodology it uses to determine discrimination through
disparate impact and the scope and purpose of its vast collection of consumer
account information.

"AFSA congratulates Cordray on his confirmation as director,
but is disappointed that the bipartisan commission structure and subjecting the
bureau to the Congressional appropriations process were not considered,"
Stinebert continued.

"Cordray has done an admirable job in building bridges with
industry and listening to our concerns," Stinebert went on to say. "AFSA looks
forward to strengthening its relationship with Cordray and the CFPB as we work
toward the mutual goals of protecting consumers while ensuring their access to
affordable credit."

Richard Hunt, president and CEO of the Consumer Bankers
Association, offered a similar reaction.

"CBA congratulates Richard Cordray and his family on being
confirmed director of the CFPB," Hunt said. "For the past two years, CBA has
worked closely with the director and the Bureau to create a level playing field
in the financial services sector. 

"We will continue to work with director Cordray to ensure
consumers have access to financial products they determine meet their family's
needs," Hunt added.

The Senate approved Cordray's confirmation by a vote of
66-34. Getting to that juncture took time and wrangling on Capitol Hill.

Earlier on Tuesday, the Senate voted in favor of cloture
being invoked, meaning debate had to end and a final vote to keep him at the
post needed to be completed. Senate Banking Committee chairman Tim Johnson, a
Democrat from South Dakota, cheered the move that eliminated the possibility
that an elongated filibuster would prevent a confirmation vote.

"This is a win for the American people, and Majority Leader
Reid should be commended for taking a principled stand in support of consumer
protection," Johnson said after the cloture decision. "Rich Cordray is finally
getting the up-or-down vote he deserves. Rich has proven to be effective
leader, and I have no doubt he will now be confirmed.

"I want to thank Rich for his patience and dedication over
the past two years," Johnson continued. "Despite uncertain prospects for his
confirmation, which had nothing to do with his qualifications, Rich was
undeterred and has done a remarkable job getting the CFPB up and running."

The CFPB has ramped up its actions involving vehicle
financing significantly since the start of the year. SubPrime Auto Finance News
published details about the bulletin the CFPB released in conjunction with
indirect auto lending as well as the reaction to the first enforcement action the
agency made.

The bureau has been questioned intensely by lawmakers,
including by Sen. Mike Crapo, the ranking member of the Senate Banking
Committee. Crapo recently sent a request to the Government Accountability
Office, asking that agency to investigate how the CFPB is collecting volumes of
consumer data.

Meanwhile, one of the architects of the CFPB also applauded
Tuesday's votes. Sen. Elizabeth Warren helped to devise the CFPB's structure
before being elected in Massachusetts.

"The agency has become the watchdog that so many of us
fought for. And Rich has surpassed even the high expectations I had for him the
day two years ago that I stood next to him in the Rose Garden as the president
first announced his nomination to the CFPB," said Warren, now a Democrat
representing Massachusetts.

Warren also made a strong statement to individuals who tried
to slow the confirmation process.

"The Consumer Financial Protection Bureau is the law and it
is here to stay. Do your dirtiest with obstructing the confirmation of the
director, but the agency will keep on doing what it does best: fighting for
people," Warren said.

The vote to invoke cloture went 71-29 in favor of the move
as 17 Republicans joined all 54 Democrats in the Senate for approval.

While Cordray now is fully in place at the top of the CFPB, Isaac
Boltansky, an analyst with Compass Point Research & Trading told Bloomberg
that he expects the agency to remain "a lightning rod for controversy."

Boltansky said in this report, "Cordray's confirmation will
remove a meaningful operational cloud that has hovered over the CFPB for three
years, but there is no reason to believe that the political rhetoric surrounding
the agency will subside."

Nick Zulovich can be reached at nzulovich@subprimenews.com. Continue the conversation with SubPrime Auto Finance News on LinkedIn and Twitter.


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