CFPB Sends Mixed Messages

She added, "Mulvaney is now shamefully working to deconstruct the Consumer Bureau and remove protections for hardworking Americans."

However, the committee's Republican chairman, Jeb Hensarling of Texas, had a decidedly different view.

"Under the leadership of Acting Director Mulvaney we are seeing this agency be reformed and restructured into one that is fully accountable to We the People and truly protects consumers by ensuring their economic freedom," Hensarling said."

Mulvaney outlined his philosophy during a speech at the recently concluded CUNA Governmental Affairs Conference, when he said—to audience applause—that he does not favor a one-size fits all approach to regulations.

"We hope to be able to tailor regulations to the size and complexity and activities of the entities that we are regulating," he said.

He added, "We are still going to go after bad actors. There is still a role for Consumer Financial Protection Bureau in this nation, and we are still going to do that."

To that end, the agency released a revised strategic plan, which makes it clear that Mulvaney intends to be far less aggressive than Cordray. He said that the CFPB will scrub all of its rules to ensure that the agency is strictly following Dodd-Frank.

"Indeed, this should be an ironclad promise for any federal agency; pushing the envelope in pursuit of other objectives ignores the will of the American people, as established in law by their representatives in Congress and the White House," Mulvaney said, in releasing the plan.

Mulvaney announced that the agency will examine rules that it issued during the past five years, with an eye on relieving what he said is excessive regulation.

And he said that since debt collection makes up a large percentage of the complaints the agency receives, he expects to spend more time on that issue than on others, such as prepaid cards.

In his short tenure at the CFPB, Mulvaney has:

• Signaled his intention to reexamine its huge payday lending rule. Credit unions have not been critical of the rule because it exempts loans modeled after the NCUA Payday Alternative Loan program.
• Requested public comment on virtually all of the agency's functions. The agency has requested comment on how it administers consumer protection law, whether its civil penalties are fair, whether its system of administrative adjudication should be changed, how the agency handles public reporting of consumer complaints and how well it works with other state and federal agencies. The bureau also is seeking comment on the issue of how well it engages with the public and stakeholders, including the work of its Credit Union Advisory Council.
• Signaled his intention to solicit comment on a variety of other subjects, including consumer education, guidance and implementation support and its rulemaking process.
• Reorganized the agency's Office of Fair Lending and Equal Opportunity, weakening the office's enforcement powers.
• Told state attorneys general that he intends to rely more heavily on them for leadership and collaboration in consumer protection.
• Requested no quarterly funding from the Federal Reserve in January. The agency's funding is drawn from the Fed, but Mulvaney said the bureau had sufficient money in reserves and therefore it did not need any additional funds.
• Dropped an investigation of World Acceptance Corp., one of the largest small-dollar loan companies. The company specializes in installment loans and had indicated in March 2014 that it was a target of the CFPB.

Since taking office, Mulvaney has sparred with Sen. Elizabeth Warren (D-Mass.), credited with developing plans for the agency as part of Dodd-Frank.

Warren and other Democrats have questioned Mulvaney's ethics, saying that some of his motivation may come from campaign contributions he received as a Republican House member from South Carolina.

Mulvaney appeared to urge Warren to keep the debate on a higher ground.

"Civil discourse rests upon our reciprocal understanding that no matter how strongly we may disagree on matters of policy, we are motivated by principle and our mutual desire to serve the American people to the best of our abilities," he said in a letter to Warren.

But days later, Mulvaney told those attending GAC that it does not bother him at all if his work at the CFPB is keeping Warren up at night.

Given his actions to change the CFPB, it is easy to forget that Mulvaney, who is director of the Office of Management and Budget, is only acting director. He can serve a maximum of 210 days if Trump does not nominate a successor.

And so far, Trump has not nominated anyone.

However, that clock stops if Trump nominates someone and the nomination is pending in the Senate. In that case, Mulvaney can serve until the nominee is confirmed.