GAO: Trump’s CFPB Couldn’t Justify Reorganization of Fair Lending Office

Appearing to confirm the suspicions of Democratic critics, the Government Accountability Office reported Monday that the Trump Administration haphazardly reorganized the consumer bureau’s fair lending office, resulting in confusion at the agency and a drop in enforcement actions.

In a scathing report, the Government Accountability Office said the Consumer Financial Protection Bureau, under then Acting Director Mick Mulvaney and then former Director Kathleen Kraninger, failed to produce any documentation to justify transferring the agency’s Office of Fair Lending and Equal Opportunity to another branch in the director’s office.

CFPB Proposes to Stop Foreclosures Through the End of 2021

The Consumer Financial Protection Bureau is proposing a rule that would stop mortgage servicers from foreclosing on most home loans before December 31, 2021. This follows the agency’s withdrawal of its earlier position that financial services companies would have flexibility in following agency rules during the pandemic. The comment period on the proposed mortgage rule will be open until May 10.

IG Says Reorganization, Staff Cuts Could Hamper CFPB’s Ability to Handle Complaints

The Consumer Financial Protection Bureau’s Consumer Response staff has been reorganized and cut during the past three years—moves that could affect the agency’s handling of consumer complaints that have skyrocketed during the pandemic, the CFPB’s Inspector General said in a report issued last week. The Consumer Response office was moved structurally twice and ended up in the newly created Division of Consumer Education and External Affairs, the IG said, in a report on the management challenges the CFPB faces. “These moves may affect the management of consumer complaints, particularly as the Bureau has redistributed some of Consumer Response’s resources to