Former World Bank President David Malpass unpacking President Donald Trumps for the federal reserve to reduce interest rates on Kudlow.
THE Consumer financial protection office (CFPB) advanced Thursday with radical layoffs at the agency while the Trump administration seeks to redo the consumer application agency.
A source familiar with the process told Fox Business that more than 1,500 workers at CFPB will receive discount opinions. Layoffs are through the main functions of the CFPB, including Supervision of financial institutions and its application arm.
Following job cuts, the CFPB will have just over 200 people remaining to carry out the regulatory activities of the agency.
THE Wall Street Journal Reported On Wednesday, a letter was sent to the staff of the CFPB of the Legal Director of the Agency, Mark Paoletta, who described how the agency refocuses its efforts on “tangible damage to consumers” by realcoing the resources of application and supervision activities that can be carried out by states.
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The signaling is visible at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, DC, United States, May 14, 2021. Reuters / Andrew Kelly (Reuters / Andrew Kelly / Reuters)
The memo said that the CFPB supervision arm will reduce the number of supervision “events” or the 50%exams, emphasizing “the reconciliation, correction and correction of damage subject to consumer complaints”.
CFPB will also move its objective mainly on deposit institutions, rather than non -depository institutions, returning to a mixture of 2012 when 70% of CFPB supervision was on Banks and deposit institutions and 30% on non-banks. The memo said that currently, this mixture has “completely returned” with more than 60% on non-banks and less than 40% on banks and deposit institutions.
The memo continued by saying that the CFPB will concentrate its anti-fraud efforts in areas where there is “equipment and measurable Damage to consumers Unlike questions based on the perception of the office that consumers have made “bad” choice “.
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OMB director Russell Vought is currently an acting director of the CFPB. (Photo of Andrew Harnik / Getty Images / Getty Images)
Mortgage loans will receive the highest priority, followed by violations of furnishing data, Consumer contracts And debts, overcharging and fraudulent costs, as well as inadequate controls to protect consumer information.
In addition, the new CFPB priorities will see the agency take a step back from the areas where state regulators have significant authority unless it is required to do so by law, while also eliminating the regulatory functions in doubles that other federal agencies have jurisdiction.
The memo said that the CFPB “will not continue to monitor new legal theories” and “will focus on the areas that are clearly in its statutory authority”.
The activists protested against the Trump administration cuts in agencies such as the CFPB. (Alex Wong / Getty Images / Getty Images)
The areas that must be prioritized with the CFPB include loans for other “initiatives for” justice “(criminals) individuals”, as well as medical debt, platforms and peer-to-peer loans, student loans, Remiding, consumer data, as well as digital payments, according to memo.
The CFPB is currently managed by the acting director, Russell Vought, who is also the head of the Management and Budget Office (OMB).
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Jonathan McKernan was nominated to be director of the CFPB, although his appointment has not yet been considered by the Senate. McKernan was previously a member of the Federal Board of Directors Deposit Insurance Corporation (FDIC).