Kraninger Confirmed as New Director of the BCFP

The Senate confirmed Kathy Kraninger (50-49) today as the new director of the Bureau of Consumer Financial Protection (BCFP). Kraninger, who has worked as associate director for the Office of Management and Budget (OMB) since March 2017, will serve a five-year term.

Kraninger will succeed acting BCFP director Mick Mulvaney. President Trump appointed Mulvaney to an interim directorship in November 2017 following the resignation of Richard Cordray (who then unsuccessfully ran for Ohio governor). Kraninger had previously worked side-by-side with Mulvaney when he served as director of the OMB.

It is still unclear what policy goals and enforcement actions Kraninger, largely a political unknown, will pursue. We predict Kraninger will follow in the footsteps of Mulvaney, who sharply scaled back the BCFP’s activities in contrast to the aggressive enforcement posture adopted by Cordray. Perhaps most telling, however, are Kraninger’s own comments at her confirmation hearing where she stated she  could not identify “any actions” taken by Mulvaney “with which I disagree.” The Bureau has kept a low profile during this interim time period and it’s likely it may now pursue some enforcement actions.