As a federal court prepares to determine whether his appointmentis legal, Acting CFPB Director Mick Mulvaney Thursday announcedthat the agency will not assess penalties for Mortgage DisclosureAct data collected in 2018 and reported in 2019 and will change itsrule governing prepaid accounts.

The announcements came as Mulvaney begins leaving a TrumpAdministration imprint on the agency, from changing its missionstatement to changing the name of a scholar’s program.

The moves are further signs that Mulvaney, an outspoken criticof the agency, intends to roll back the aggressive rulemaking theagency pushed under the regime of former Director RichardCordray.

Cordray was appointed by former President Barack Obama.Following Cordray’s resignation, President Trump appointedMulvaney, the director of the Office of Management and Budget, asacting director of the CFPB. That appointment is being challengedin federal court by Leandra English, Cordray’s choice to serve asdirector.

A D.C. federal court is scheduled to hold a hearing on English’schallenge Friday.

Meanwhile, Mulvaney is making moves to ensure that the TrumpAdministration leaves its imprint on the agency, reportedly movingTrump administration supporters into key roles in the bureau.

Prepaid Cards

The bureau said Thursday that it expects to issue final ruleamending its 2016 rule governing prepaid accounts. The agency saidthat based on comments received, the bureau expects to furtherextend the effective date of the 2016 rule to allow additional timefor its implementation.

Credit union trade groups had sought the delay.

“We’re pleased to see the CFPB announce the implementation delayof the rule, which we have stated will provide issuers and vendorsadequate time to make the required changes,” said CUNA ChiefAdvocacy Officer Ryan Donovan.

NAFCU officials also were pleased.

"While NAFCU continues to believe that the prepaid rule shouldnot apply to credit union issuers of prepaid accounts, we welcomethe prospect of having additional time to implement it,” saidAndrew Morris, NAFCU’s regulatory affairs counsel.

HMDA Rules

And in another move hailed by the credit union industry, theCFPB Thursday announced that it will not assess penalties forMortgage Disclosure Act data collected in 2018 and reported in2019.

That move is being coordinated with the NCUA and other financialregulators.

The bureau also announced that it is reconsidering other aspectsof the HMDA, such as he institutional and transactional coveragetests and the rule’s discretionary data points.

The bureau said that it will not require resubmission of datacollected in 2018 and reported in 2019. Beginning January 1,financial institutions will submit HMDA data collected in 2017,using the bureau’s new online platform.

“The Bureau recognizes the significant systems and operationalchallenges needed to meet the impending requirements under therule,” the agency said, in explaining the moves.

Credit unions have been pushing for changes in the HMDArules.

“This is a significant win for credit unions, as CUNA has urgedthe bureau for years for relief from HMDA requirements that place aheavy burden on credit unions,” said CUNA President/CEO Jim Nussle.“Credit unions will be unduly burdened by the data reportingrequirements finalized in October 2015, and CUNA will fully engagewith the bureau during this rulemaking process to ease thesereporting requirements on credit unions."

“The 2015 HMDA rule requires collecting a significantly greaternumber of data points than what was mandated by Dodd-Frank, andrelief for smaller institutions was only temporary, said BrandyBruyere, NAFCU’s vice president of regulatory compliance. “NAFCU isglad to see the CFPB, under acting Director Mulvaney's leadership,is willing to hear credit unions' concerns.”

“The agency is taking a prudent position on the HMDA changes,said Paul Gentile, president/CEO of the Cooperative Credit UnionAssociation.

“The agency should not be quick to penalize institutions,especially credit unions, as the new provisions take effect,” hesaid.

Gentile added, “Credit unions were never part of the problemthat created HMDA and aren’t the problem now. We welcome the CFPB’sannouncement today and encourage the agency to make further changeto lessen the HMDA burden on credit unions."

Cosmetic Changes

The agency also is making more subtle changes.

The agency also appears to have changed its mission from abureau that makes rules more effective to one that addressesburdensome regulations.

Under Cordray, the closing paragraph of agency statements read,“The Consumer Financial Protection Bureau is a 21st century agencythat helps consumer finance markets work by making rules moreeffective, by consistently and fairly enforcing those rules, and byempowering consumers to take more control over their economiclives.”

Now, the statement reads, “The Consumer Financial ProtectionBureau is a 21st century agency that helps consumer finance marketswork by regularly identifying and addressing outdated, unnecessary,or unduly burdensome regulations, by making rules more effective,by consistently enforcing federal consumer financial law, and byempowering consumers to take more control over their economiclives.”

Finally, the bureau has renamed a scholar’s program the agencyoffers. The program previously was called the Louis D. BrandeisHonors Attorney Program and was named after a Supreme Court Justicewho was a noted consumer advocate.

This week, the bureau renamed the program the “Joseph StoryHonors Attorney Program.,” named after a Supreme Court Justice whowas a longtime property rights advocate.