Senate Banking Committee approves Cordray nomination

Richard Cordray

Richard Cordray

The Senate Banking Committee voted 12-10, along party lines, on Tuesday to approve the nomination of CFPB Director Richard Cordray.

Republican committee members unanimously opposed Cordray’s re-appointment, ReverseMortgageDaily reports.

“This issue with his confirmation is a broader debate,” Sen. Mike Crapo (R-Idaho) said, according to ReverseMortgageDaily. “The CFPB was established unlike any other government department or agency.”

The CFPB was established under the controversial Dodd-Frank Act, and the agency’s authority has recently been called into question after a court ruling deemed Codray’s appointment to be unconstitutional.

President Obama used the power of recess appointments to overcome Republican opposition and install Cordray as the CFPB director. A court ruled, however, that the appointment was unconstitutional because Congress was not in recess.

Republican members of Congress have criticized the agency, saying that the CFPB and Cordray have over-expansive power, vowing to block Cordray’s nomination unless key changes are made to the agency. Some of the requested changes include the placement of the CFPB’s budget under the congressional appropriations process and the replacement of Cordray with a bipartisan, five-member commission.

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