Richard Cordray's recess appointment by President Obama to serve as the director of the CFPB expands the bureau's powers to act over non-bank firms.
To use its full authority, the CFPB needed to have a director. Cordray's appointment activates the bureau's full responsibilities for supervising and regulating traditional lenders, loan originators and credit bureaus, Bloomberg reports.
“With a director finally in place and no question about its powers, the Consumer Financial Protection Bureau can start scrutinizing unfair practices by debt collectors, mortgage brokers, credit reporting agencies, and predatory payday lenders,” Lauren Saunders, the managing attorney at the National Consumer Law Center, said, according to Bloomberg.
Cordray called the oversight of non-bank financial firms a "top priority."
“Over the coming weeks we’ll be announcing more information about this program and how it will help to improve the consumer finance markets,” Cordray said, Bloomberg reports.
While the CFPB continues to grow beyond banks, it is also focused on improving disclosure for mortgages, credit cards and student loans.
“The bureau will continue to roll out its agenda, initially focusing on the big products,” Reid Cramer, director of the asset-building program at the New America Foundation, said, according to Bloomberg. “But they will now be able to shed any lingering timidity as a startup agency.”