On January 6, the CFPB announced several leadership changes. Specifically, Leandra English is returning to the CFPB to serve as the Chief of Staff; Jerry Horton will serve as the CFPB’s Chief Information Officer; Paul Kantwill will serve as the Bureau’s Assistant Director for Servicemember Affairs; John McNamara will serve as Assistant Director of Consumer Lending, Reporting, and Collections Markets; and Elizabeth (Eli) Reilly will serve as the CFPB’s Chief Financial Officer.
Over the objections of the CFPB, the D.C. Circuit today granted the request of PHH Corp. to file a supplemental brief responding to arguments in support of en banc review that were raised for the first time in a brief filed by the U.S. Solicitor General on the December 22, 2016. PHH’s supplemental brief is due on or before January 27, 2017. For additional background, please see our summaries of the panel decision, the CFPB’s petition for rehearing, and the D.C. Circuit’s order directing PHH to respond and the Solicitor General to provide views.
On January 5, 2016, the Trump Transition team announced the names of the four individuals assigned to lead the President-elect’s CFPB “Landing Team.” Generally, each landing team is tasked with collect information on each agency—ranging from the agency’s budget and policies to the status of various rulemakings and the current administration’s priorities—all with the overarching purpose of facilitating an orderly transfer of power at the federal financial regulators. The CFPB Landing Team includes:
- Paul Atkins, former GOP Commissioner for the SEC and current CEO of Patomak Global Partners LLC, which provides consulting services concerning financial services industry matters, regulatory compliance, risk and crisis management, public affairs, independent reviews, litigation support, and strategy.
- Kyle Hauptman, Senior Development Manager and occasional writer about financial & political issues for the American Enterprise Institute (AEI), member of the SEC’s Advisory Committee on Small and Emerging Companies, and former chief economic adviser on the issues of Financial Markets, Housing to the Romney For President (RFP) campaign.
- Consuala “CJ” Jordan, a public relations executive and Republican political consultant who is currently CEO of The Jordan Management Group, LLC, a full service Government Relations and Public Affairs Firm, specializing in strategic business development.
- Julie B. Lindsay, Managing Director and General Counsel of Capital Markets and Corporate Reporting at Citigroup Inc., and former Counsel to Commissioner Glassman at the SEC.
On January 12, the CFPB published a final rule adjusting upward the maximum amount of each civil penalty within its jurisdiction, as required by provisions of the Inflation Adjustment Act and OMB Guidance. As explained in the rule, the new penalty amounts for 2017 are calculated by multiplying the corresponding 2016 penalty by a “cost-of-living adjustment” multiplier—which for 2017 has been set by the OMB at 1.01636—and then rounding to the nearest dollar. The new penalty amounts apply to civil penalties assessed after January 15, 2017.
On January 10, the CFPB issued a notice of proposed rulemaking concerning amendments to its existing Supplemental Standards of Ethical Conduct for Employees. Among other things, the proposed rule would amend CFPB Ethics Regulations that address: (i) outside employment for covered employees; (ii) Bureau employee ownership or control of certain securities; (iii) restrictions on seeking, obtaining, or renegotiating credit; and (iv) disqualification requirements based on existing indebtedness. The proposed rule is also intended to clarify certain definitions. Comments on the proposal must be received on or before February 9.