Executive order requires repeal of two existing regulations for each new regulation

does executive order apply to CFPBOn January 30, President Trump signed an executive order entitled “Reducing Regulation and Controlling Regulatory Costs.”

The executive order only applies to “an executive department or agency.” It does not apply to independent agencies. Because the CFPB’s exact status is in question, the order’s applicability to the Bureau is unclear. In PHH, the DC Circuit declared the CFPB’s leadership structure unconstitutional and changed the Bureau from an independent agency to an executive agency. The DC Circuit has not issued the mandate because the CFPB has filed a petition for rehearing, so the decision has not yet taken effect. Accordingly, the executive order should not apply to the CFPB at this time.


What Trump’s regulatory moratorium means for CFPB payday rule

does freeze memo apply to payday ruleOn January 20, the Trump Administration issued a memo directing the recipients to freeze the review and final publication of pending regulations. The memo states, “send no regulation to the Office of the Federal Register (the “OFR”) until a department or agency head appointed by the President after noon on January 20, 2017, reviews and approves the regulation.” The memo clarifies that these instructions extend to “any substantive action by an agency (normally published in the Federal Register) that promulgates or is expected to lead to the promulgation


Cordray discusses future of CFPB in Trump era

CFPB Director CordrayOn January 24, at a Wall Street Journal event in Washington DC (video here), Cordray was asked about his job security amidst the change in administration. He explained that he intends to serve the remainder of his five-year term despite calls from Republican lawmakers for his removal. Cordray, who became the CFPB’s first-ever Director in 2013, explained that his term straddles two presidential terms by design. The reason? To ensure the independence of the position and the agency and to avoid partisan politics.


What Trump election means for the CFPB

The future of the CFPB in a post-Obama era is as precarious as it is uncertain. Many observers believe that a Trump Administration signals the end of the CFPB’s run as what some have called “the least accountable regulatory agency in the federal government” and “the most powerful agency that’s ever been created in Washington.” During his campaign, President-elect Donald Trump announced that he would work to repeal the Dodd-Frank Act – the financial reform legislation that established the CFPB.


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