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U.S. Senate Panel Approves CFPB and Ex-Im Bank Nominees

Tristan North - Aug 27 2018
Published in: Public Policy

On 23 August, the U.S. Senate Committee on Banking, Housing and Urban Affairs voted to advance the nominations of Kathleen Kraninger and Kimberly Reed.

The Committee voted unanimously in support of the nomination of Reed to be President of the Export-Import (Ex-Im) Bank. In the case of Kraninger to be the Director of the Consumer Financial Protections Bureau (CFPB), the Committee voted 13-12 along party lines in favor.

All Committee Democrats were opposed to advancing the nomination of Kraninger stating she did not have the necessary financial policy background. She also faced concerns with her assumed involvement in her role at the Office of Management and Budget (OMB) with the zero-tolerance immigration policy of the Administration as well as the disaster relief response to Puerto Rico.

In her confirmation hearing, Kraninger pledged to establish four initial priorities for CFPB if confirmed. She stated she would ensure fairness of the Bureau, work closely with other financial regulators and states on supervision and enforcement, protect sensitive data and remain accountable to the American people. If approved by the full Senate, Kraninger would replace acting CFPB Director Mick Mulvaney who is also Director of OMB.

Related: Mulvaney Continues to Shape U.S. CFPB

How This Impacts Mobility

The relocation of a transferee often involves the sale and/or purchase of a home and thus the policies and practices involving real estate directly impact Worldwide ERC® members. The CFPB Director has enormous powers with little oversight from Congress and thus the policy positions of a specific individual as director determines the direction of the Bureau. Under OMB Director Mulvaney, the CFPB has taken the position to enforce consumer protection laws but to not “push the envelope”. Kraninger would likely maintain that philosophy.

Related: U.S. CFPB Concludes RESPA Investigation of Zillow Co-Marketing

Reed currently serves as the First Vice President of the Ex-Im Banks. She maintains overwhelming support on both sides of the aisle for her nomination. Her stated key principle is for the Ex-Im Bank to be the lender of last resort. Reed also pledged that she would do all that she can to reduce waste, fraud and abuse within the Bank. If confirmed, Reed would replace acting EX-IM President Jeffrey Gerrish.

The Export-Import Bank provides financing, loan guarantees and insurance to companies for exporting goods and services overseas in situations where financing is otherwise unavailable due to geopolitical or other concerns. The Board of the Bank is comprised of five members.  With three of those seats currently vacant, the Bank has not been able to fund deals worth more than $10 million due to a lack of quorum.

The nominations of Kraniger and Reed will now go to the full Senate for final consideration.

Interested in discussing these nominations and their ramifications further? Join Tristan at the 2018 Global Workforce Symposium for the Worldwide ERC® Tax and Legal Update session, which will be held Thursday, 18 October 2018 from 11:15 a.m. to 12:15 p.m. Register today to take part!