After much anticipation, the Consumer Financial Protection Bureau published its finalized rule on payday lending on Thursdsay.
The rule, while outside of the mortgage world, is still a big deal and is likely to face just as much backlash as the bureau’s previously announced arbitration rule.
And if the rule follows the same path as the arbitration rule at all, it’s headed straight to Congress to be debated and possibly overturned.
Congress is currently in the process of potentially overturning the arbitration rule using the Congressional Review Act. Under the Act, Congress may overturn a broad range of regulatory rules issued by federal agencies by enacting a joint resolution of disapproval within 60 days of the rules being announced.
During a call with reporters on Thursday to discuss the payday lending rule, the CFPB stayed quiet on the idea that the payday lending rule is destined for the same fate as the arbitration rule.
But beyond the payday lending rule’s impact on the financial markets, there’s another topic that the CFPB stayed mum on during the call, to no surprise.
The bureau’s announcement could carry a much bigger meaning for the financial services industry: the growing possibility that CFPB Director Richard Cordray might soon step down and officially announce a bid for Ohio governor.
Lately, rumors have swirled around Cordray running for Ohio governor, nearly reached a boiling point of late, especially after two well-timed speeches from Cordray in Ohio that could just have easily been speeches on his bid for governor.
It was presumed that Cordray wouldn’t leave his position at the bureau until the payday lending rule was finalized.
Well, now it is.
If Cordray does opt to run, he would have to put in his resignation as the leader of the CFPB. Under Ohio law, Cordray can’t run for Ohio governor if he is currently engaged in politics, an issue Republicans have been watching him like a hawk on.
So with this potentially final piece complete on what was presumed to be preventing Cordray from announcing his future plans, can the industry expect an announcement any day?
We'll be waiting.
Do you even think he will run? Leave your thoughts in the comment section below.
