Mulvaney to Tap CFPB Reserve Fund for Bureau's Q2 Operating Budget

Mulvaney to Tap CFPB Reserve Fund for Bureau's Q2 Operating Budget

For the final quarter of fiscal 2017, that figure was $84.6 million.

Unlike previous requests for funding, Mulvaney sent his directly to Yellen, the head of the Fed; under Cordray, those submissions went to other high-ranking officials. He argued that the funding from the Federal Reserve could better be used to reduce the federal deficit.

The consumer bureau's new director, White House budget chief Mick Mulvaney, announced this week that the agency will "reconsider" the regulation issued in October, which would have required payday lenders to evaluate whether borrowers can pay back their loans.

In his letter to Yellen, he said: "I have been assured that the funds now in the Bureau Fund are sufficient for the bureau to carry out its statutory mandates for the next fiscal quarter while striving to be efficient, effective and accountable".

Former director Richard Cordray, an Obama appointee, requested $217.1 million a year ago.

Those funds were set aside by former CFPB Director Richard Cordray in case of emergencies, but Mulvaney suggested he didn't see the point. He said that while the saving wouldn't make much of dent in the deficit, "the men and women at the Bureau are proud to do their part to be responsible stewards of taxpayer dollars".

Mulvaney, whose appointment as acting director in November is the subject of legal action by current CFPB Deputy Director Leandra English, has made clear that he's no fan of the agency he now leads. ABA continues to advocate for greater transparency and stronger oversight of the CFPB, and has previously expressed its view that the bureau should be led by a bipartisan commission rather than a sole director and subject to the annual congressional appropriations process. Mr. Mulvaney said he would spend the reserve further before making a budget request from the Fed.

The senators wrote the agency's efforts have already been "undermined" with the appointment of Mulvaney as the interim director given his current role as Office and Management Budget director. Mulvaney wants the Fed to return the money they would've given to the bureau to the Treasury. In a 2014 interview, Mulvaney called the bureau a "joke - in a sad, sick kind of way" and said that he "would like to get rid of it".

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