In an internal email to CFPB staff, Director Cordray announced that he will be stepping down by the end of the month. Industry participants and observers have long speculated that Director Cordray might leave office prior to the expiration of his five-year term (July 2018) to run for governor of Ohio.
Upon his departure, Director Cordray will be succeeded by the Bureau’s acting deputy director, David Silberman. The Administration is likely, however, to appoint a new acting director pursuant to the Federal Vacancies Reform Act. We have discussed—in the context of the now-defunct Arbitration Rule—how some of the various scenarios could play out. The Administration could select an acting director from three categories:
- The CFPB’s Acting Deputy Director;
- An officer of another agency who has been confirmed by the Senate, with the most likely choice being a Treasury official; or
- A lower-ranking, non-confirmed CFPB official.
Some have speculated that Treasury Secretary Mnuchin could be chosen for the role, and delegate the authority of the director to another person under Section 1012(b) of the Dodd-Frank Act. A permanent new director would need to be nominated by the President and confirmed by the Senate.