‘[T]He fights to save the agency has created a number of strange bedmates, “said the report. “Mortgage lenders, who have traditionally been one of the groups that have been transferred to the supervision of the agency, have also insisted that the agency is not being closed, at least without careful planning, according to three people who are familiar with internal discussions at the agency.”
Despite the efforts of the acting director of the office and leader of the White house Office of Management and Budget (OMB), Russell Vought, one of the events that may have impeded the actions designed to stop the activities of the agency, was directly related to the mortgage market. Vought’s attempt to completely close the activities of the agency became a “roadblack” as a result of “a mysterious characteristic of the mortgage industry,” the report explained.
That function is the weekly publication of the Average Prime offer percentage. Shortly after taking on the role of acting director, Vough’s stop order influenced the weekly publication of the rate, but the feedback and impact on the mortgage market was fast.
“Because lenders need that rate to certify that their loans are in accordance with the rules for safe loans, the mortgage market would freeze if the agency stopped publishing abruptly,” the report said. “And so the new leaders of the agency allow employees to restart that position.”
This is characterized as “an early lesson for the Trump administration that the closing of an agency that is woven into the American infrastructure of the American financial industry is a difficult task”, and is seen as an important roadblock that has encountered the functions of the agency’s functions.
Another important roadgreaf National Treasury Employees Union (Nteu), who has challenged the White House Office of Personnel Management (OPM) to dismiss 1,175 CFPB employees – the vast majority of his workforce.
Last week, the court supervises that case in the US District Court for the District of Columbia Explained that she ‘leaned’ in the direction of a provisional order that would effectively pause a plan to settle the activities of the desk.
This came after a testimony from the Chief Operating Officer of the CFPB, Adam Martinez, and claims from employees that CFPB director will try to close the agency as soon as he is confirmed by the Senate.
But the White House argues that the nomination of McKernan and recent orders for the staff to continue to “continue to work legally required” are proof of the intentions to keep a scaled agency.
