President Obama's nominee to be the director of the Consumer Financial Protection Bureau is scheduled to testify before the Senate Banking Committee on Thursday, although Republicans are still vowing to block the nomination.
Former Ohio Attorney General Richard Cordray has been selected to lead the CFPB, which received its regulatory authorities on July 21 with respect to federal consumer financial protection laws that existed before last year’s financial overhaul legislation, according to the National Association of Federal Credit Unions.
Until a director is confirmed by the Senate, the CFPB is unable to exercise its new authority under the act for federal supervision of non-depository financial services providers, which includes payday lenders and mortgage brokers.
Republicans in the Senate have written the president warning they will not confirm any director until structural changes are made to the agency.
Cordray’s uphill confirmation process also includes a battle with House Republicans who recently passed a bill that calls for easing the ability for the Financial Stability Oversight Council to overturn the agency’s rules, replacing the director with a bipartisan, five member commission and delaying the agency’s assumption of its regulatory authorities until a director is at least confirmed, according to the National Association of Federal Credit Unions.