Richard Cordray’s confirmation “is just what the market needs as lenders and servicers prepare for the launch of the qualified mortgage rule, new servicing standards and a variety of other rules”
Venable partner Allyson Baker was interviewed by HousingWire in a July 16, 2013 article on the confirmation of Richard Cordray to serve as director of the Consumer Financial Protection Bureau (CFPB). Cordray’s confirmation creates certainty at the bureau and for financial firms bracing for new regulations.
According to Baker, Cordray’s confirmation “is just what the market needs as lenders and servicers prepare for the launch of the qualified mortgage rule, new servicing standards and a variety of other rules.”
Prior to his confirmation, Cordray had been serving as director through a recess appointment. “One of the things that is ultimately beneficial is there’s a lot of parlor talk of what is going to happen if Director Cordray is forced to step down because his recess appointment expires,” Baker said. If his appointment had expired, it would have raised questions about what happens to current and past examinations, nonbank supervision and rules finalized by Cordray.” I think you now have some certainty that the work the agency has done so far will continue,” Baker said. “For the foreseeable future, you are going to see the CFPB’s agenda carried out and you are not going to have the kind of uncertainty that has been out there a while.”
Before Cordray’s confirmation became official, lenders and services were acting as if Cordray would continue to be the CFPB director. “I think it would be foolhardy to tell a client not to comply with the CFPB because Director Cordray might not stay there. People are already acting as if it is a permanent agency,” Baker added.
Speaking about the CFPB’s work with the uncertainty about Cordray’s confirmation, Baker told HousingWire, “I think people at the CFPB have done an admirable job of keeping their heads down and doing the work of the agency in the midst of uncertainty concerning Cordray’s confirmation.” Baker also spoke about what Cordray’s confirmation means for lenders and servicers. “It allows them to say this is what it’s going to look like, and now we can move forward because we have some certainty in the marketplace. Certainty is useful if you are trying to structure your business operations and working with fairly new parameters,” she said.