Donors Rejoice! Mulvaney Intensifies Effort to Gut CFPB’s Fight Against Discriminatory Lending Practices

February 1, 2018

Donor That Gave Mulvaney $30,000 Called His Previous Changes to CFPB’s Anti-Discrimination Efforts, “A Significant Win”

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WASHINGTON, D.C. – Today, it was reported that Mick Mulvaney, “acting director” of the Consumer Financial Protection Bureau (CFPB), told Bureau staff that “he was seizing control of the unit responsible for policing” discriminatory lending practices by moving the Office of Fair Lending and Equal Opportunity (OFLEO) out of the Bureau’s enforcement division responsible for going after bad financial actors. Instead it will now be “under his direct control” through a personnel office that oversees “equal employment opportunity and diversity” issues for Bureau employees.

This is not the first time during Mulvaney’s short tenure at the CFPB that he has taken steps to weaken the Bureau’s efforts to fight discriminatory lending practices. In December, after the Mulvaney-run Bureau declared its intent to “reconsider” mortgage data reporting requirements that helped the CFPB identify discrimination. The move was called “a significant win” by the Credit Union National Association (CUNA) which also lobbied on the issue and just so happens to have given Mulvaney $30,000 in campaign cash over the years.

“The mission of the Consumer Financial Protection Bureau is pretty simple. Hell, it’s in the name – protect consumers. Mick Mulvaney has rejected that mission since he walked in the door in November and it is hardworking American consumers that are hurt while the Wall Street special interests that showered him with campaign contributions reap the rewards of their investment,” said Karl Frisch, executive director of Allied Progress.

He continued, “How many more examples do we need of Mick Mulvaney doing the bidding of his campaign contributors before President Trump will pull the plug and nominate a new director that can earn the respect of consumer and the support of Republicans and Democrats in the Senate?”

What You Need To Know:

1. 1. This week, Mulvaney told CFPB staff that “he was seizing control of the unit responsible for policing anti-lending-discrimination laws” by moving the Office of Fair Lending and Equal Opportunity” (OFLEO) “under his direct control.” [David Dayen, “After Boasting About Lowering Black Unemployment, Trump Undermines The Federal Unit Defending Against Housing Discrimination,” The Intercept, 02/01/18]
   2. This comes after the Mulvaney-run CFPB declared its intent to “reconsider” mortgage data reporting requirements that help it identify discriminatory lending practices. [“Statement with respect to HMDA implementation,” Consumer Financial Protection Bureau, 12/21/17]
   3. The Credit Union National Association (CUNA) cheered the Mulvaney-run CFPB’s move to “reconsider” this data reporting. The group had previous lobbied on the issue and declared the change “a significant win.” [Michael Bartlett, “Credit union trade groups cheer CFPB’s moves on HMDA, prepaid rules,” Credit Union Journal, 12/22/17]
   4. During his Congressional Career, the Credit Union National Association (CUNA) showered Mick Mulvaney with $30,000 in campaign contributions. Their investment appears to be paying off. [Search for Contributions to John Michael (Mick) Mulvaney, FollowTheMoney.org, accessed 01/29/18]

Mulvaney’s Fight to Stop the CFPB’s Anti-Discrimination Efforts:

• Mulvaney voted against an amendment advocating for “tougher enforcement of housing anti-discrimination and predatory lending laws.” [Fiscal 2017 Budget Views and Estimates/Office of Financial Research, CQ Committee Coverage, 02/03/16]

• Mulvaney repeatedly voted to block the CFPB from regulating “auto loans with discriminatory interest rates.” [“How Maine’s members of Congress voted,” Portland Press Herald, 07/09/16; HR 5485, House of Representatives, Vote 383, 07/07/16; “HOW THEY VOTED: Inland elected officials weigh in on federal issues”, The Press Enterprise, 11/21/15 and HR 1737, House of Representatives Vote 637, 114^th Congress.]

• After Mulvaney assumed his position at the CFPB, the CFPB dropped an investigation into a company accused of preying on detained immigrants.  [“CFPB reverses course, suspends CID investigation,” RESPA News, 12/04/17; Michael E. Miller, “Company accused of preying on detained immigrants is under investigation,” Washington Post, 10/20/17; “CFPB reverses course, suspends CID investigation,” RESPA News, 12/04/17]

• Mulvaney is freezing CFPB data collection which is used to protect consumers from discrimination and other industry misconduct. [Yuka Hayashi, “New CFPB Chief Curbs Data Collection, Citing Cybersecurity Worries,” The Wall Street Journal, 12/04/17; Benjamin Goad, “GAO: Nothing unusual in CFPB data collection,” The Hill, 09/22/14; Trey Garrison, “CFPB: Data collection practices within the norm for regulators,” HousingWire, 09/23/14]

• Mulvaney voted against an “amendment that would require the CFPB to include representatives of minority- and women-owned small-business concerns as members of the Small Business Advisory Board.” [“Legislative Day: April 21, 2015 – Tuesday’s Schedule,” Congressional Quarterly, 04/21/15 and HR 1195, House of Representatives, Vote 165, 04/22/15; HR 1195, House of Representatives, Amendments, 04/22/15]

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