CFPB's Mulvaney strips his fair-lending office of enforcement powers
Acting Consumer Financial Protection Bureau Director Mick Mulvaney has stripped the agency's fair-lending office of enforcement powers in a sign that many consumer advocates see as trying to reduce oversight and penalties for firms that discriminate against borrowers.
The move appeared to be a demotion for the fair-lending division, which was previously an equal division alongside supervision and enforcement, and which is now part of the office that handles internal agency concerns about employees.
"The Fair Lending Office will continue to focus on advocacy, coordination, and education, while its current supervision and enforcement functions will remain in SEFL," Mulvaney wrote in a memo sent to staff on Tuesday, referring to the Office of Supervision, Enforcement and Fair Lending. "I do not expect that staff will experience changes in employment status, but it is possible that some may experience changes in jobs and duties."