House Financial Services Committee chairman Jeb Hensarling, R-Texas, is refusing to accept testimony from Richard Cordray, claiming his recess appointment to be the first Consumer Financial Protection Bureau director is invalidate and unconstitutional.
“Absent contrary guidance from the U.S. Supreme Court, Mr. Cordray does not meet the statutory requirements of a validly serving director of the CFPB, and cannot be recognized as such,” Rep. Hensarling says in a letter to the consumer bureau’s general counsel.
A U.S. Appeals Court for the District of Columbia recently ruled that two recess appointments to the National Labor Relations Board by President Obama were unconstitutional on the grounds that the Senate was not technically in recess. The case is known as
Cordray’s recess appointment occurred on the same day as the two NLRB appointees.
"The CFPB is not a party to the Noel Canning case, and that ruling has no direct effect on the bureau,” a CFPB spokeswoman said. “The bureau continues its essential work of protecting American consumers,” she added.
Hensarling plans to continue oversight of the CFPB and will call other CFPB officials to testify—but not Cordray.
The CFPB director is slated to testify before the Senate Banking Committee on Tuesday (April 23) to deliver the CFPB’s semi-annual report to Congress.
“Each day, we take another step in pursuit of our vision to create a consumer financial marketplace where customers can see prices and risks upfront and easily make product comparisons; in which no one can build a business model around unlawful practices,” according to an advance copy of Cordray’s opening remarks.
“Our ability-to-repay rule follows the simple principle that lenders should offer consumers mortgages they can afford to pay back,” he says.
