Mick Mulvaney Defends Enforcement Record, or Lack Thereof, at CFPB
“Let me be very clear to everyone: We are still going after bad actors,” Mulvaney told lawmakers Wednesday in Washington, pushing back against criticism the agency has softened its enforcement approach.
April 11, 2018 at 01:06 PM
4 minute read
In the nearly six months since White House budget director Mick Mulvaney took over the Consumer Financial Protection Bureau, the agency has abandoned more enforcement cases than it has brought in federal court.
That fact, made apparent by the lack of any new enforcement actions under his tenure, has fed the perception that Mulvaney is slamming the brakes at an agency widely known for its aggressive policing of the financial sector.
On Wednesday, appearing before Congress for the first time in his capacity as the Trump-appointed CFPB chief, Mulvaney fought the notion—as one Democratic lawmaker put it—that he has “essentially taken the cop off the beat.”
“Nothing could be further from the truth,” Mulvaney said, addressing several of his former colleagues on the House Financial Services Committee. “Let me be very clear to everyone: We are still going after bad actors,” he added.
While he conceded that the CFPB dismissed one lawsuit, a case against Golden Valley Lending and three other payday lenders affiliated with Native American tribes, Mulvaney said the CFPB is actively litigating 25 separate cases. Mulvaney said he had taken the “extraordinary step” of ratifying enforcement actions initiated by his predecessor, Richard Cordray, in moves meant to prevent the agency's targets from continuing to challenge the agency's independent, single-director design.
Mulvaney has so far taken that step in at least three cases, including the agency's effort to force Future Income Payments to respond to a subpoena and its high-profile enforcement action against Ocwen Financial Corp., a leading servicer of mortgage loans.
In a separate case against All American Check Cashing, a company offering check cashing and payday lending services, defense lawyers have argued that Mulvaney's ratification of the enforcement action has not rendered their constitutional challenge moot.
That defense team—headlined by Gibson, Dunn & Crutcher partner Theodore Olson, who unsuccessfully challenged the CFPB's structure in the U.S. Court of Appeals for the D.C. Circuit—has since brought a similar constitutional challenge to the U.S. Court of Appeals for the Fifth Circuit.
Wednesday's congressional hearing came a day before scheduled arguments in the D.C. Circuit over Mulvaney's claim to the CFPB directorship.
Shortly before resigning in November, Cordray elevated his chief of staff, Leandra English, to the deputy director's role. Cordray said upon his resignation that, under the Dodd-Frank Act, English was in line to step in as the agency's director. But citing a separate law, the Federal Vacancies Reform Act, the Trump administration appointed Mulvaney as the interim leader. A federal judge in Washington twice refused to block Mulvaney's appointment.
With the D.C. Circuit arguments 24 hours away, House Democrats on Wednesday made clear that their questioning of Mulvaney should not be taken as a concession that he is the CFPB's lawfully appointed leader.
“Mr Chairman, if I may, I would like to say at the outset that Mr. Mulvaney is not the acting director of the Consumer Financial Protection Bureau,” said U.S. Rep. Maxine Waters, the ranking member of the House Financial Services Committee. “He was illegally appointed by the president in a move that blatantly contradicts the Dodd-Frank statute.”
Read more:
Financial Industry Pushes for More Secrecy at Mulvaney's Consumer Bureau
Mulvaney's CFPB Doesn't Want to Keep Arguing Over the Agency's Structure
CFPB Suspends 1 Investigation as Mulvaney, at Helm, Reviews Pending Cases
Federal Judge, For Second Time, Won't Yank Mulvaney From CFPB Director's Chair
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllWells Fargo and Bank of America Agree to Pay Combined $60 Million to Settle SEC Probe
Crypto Entrepreneur Claims Justice Department’s Software Crackdown Violates US Constitution
4 minute readKraken’s Chief Legal Officer Exits, Eyes Role in Trump Administration
3 minute readSEC Ordered to Explain ‘How and When the Federal Securities Laws Apply to Digital Assets’
5 minute readTrending Stories
- 1Reviewing Judge Merchan's Unconditional Discharge
- 2With New Civil Jury Selection Rule, Litigants Should Carefully Weigh Waiver Risks
- 3Young Lawyers Become Old(er) Lawyers
- 4Caught In the In Between: A Legal Roadmap for the Sandwich Generation
- 5Top 10 Developments, Lessons, and Reminders of 2024
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250