What Does 2018 Hold for the Consumer Lending Industry?
Remember January 2017? Around this time last year, we were wondering whether incoming President Donald Trump would follow up on his campaign promises to “cancel every needless job-killing regulation,” kick out Consumer Financial Protection Bureau Director Richard Cordray, and dismantle the Dodd–Frank Wall Street Reform and Consumer Protection Act.
Now, here we are, a year later. How did things pan out?
- Dodd–Frank remains un-dismantled.
- Cordray is indeed gone—although by his own volition.
- The CFPB is currently in turmoil, due to a battle over succession between Deputy Director Leandra English (who Cordray named as his replacement) and Trump-appointed Director Mick Mulvaney.
Number one we could have guessed. Number two would have been a reach, but given Cordray’s political ambitions, it wouldn’t have been too surprising. Number three, on the other hand, is a completely bizarre turn of events no one could have predicted.
…Except, well, we kind of did predict it. Here’s what Compli Director of Sales Brian Larson wrote on this blog back in October 2016, before Trump won the election:
“If, on the other hand, Donald Trump were to become president, we would see a new era of CFPB leadership—or perhaps ‘non-leadership’ would be the more accurate term. Trump ardently opposes government regulations, and has expressed intentions to curb the CFPB and repeal the Dodd–Frank Wall Street Reform and Consumer Protection Act.
Although he would need Congressional approval to dismantle Dodd–Frank entirely, of course, Trump could replace Cordray in the meantime with someone much less interested in pursuing the CFPB’s mission, effectively incapacitating the agency. Nonetheless, that decision would itself be subject to all kinds of political challenges, and the CFPB would likely continue to regulate the financial services industry in at least some respect until Congress passed new legislation.”
Non-leadership? Check. Cordray replaced with someone less interested in pursuing the CFPB’s mission? Check. All kinds of political challenges to Trump’s decisions and an embattled Bureau continuing to regulate amid the chaos? Check and check.
I’m not bringing up a blog post from over a year ago just to brag about our powers of intuition (although you have to hand it to Brian), but to demonstrate why you shouldn’t miss out on our…
January 17, 2018 Webinar: 2018 Predictions for Consumer Lenders
Curious what is on the horizon in the second year of the Trump administration? Join us in a couple weeks for our first consumer lending webinar of the year. We’ll discuss how compliance and regulatory requirements are changing—possibly faster now than ever before—and what it all means for your business.
Tune in to hear from industry advisors Michael Benoit (Hudson Cook) and Kynzie Sims and Brian Larson (Compli), with special contributions from NAF. Together, Brian, Kynzie, and Michael will dive into what’s changing right now, and what’s on the horizon for lenders in the second year of the Trump administration.
Don’t miss the chance to say “I told you so” a year later. Register today for the webinar: Trump Administration Year 2.
(Busy? Sign up anyway, we’ll send the recording to you via email!)