Jonathan McKernan’s CFPB Nomination Faces Delay Amid Political Pressures
Concerns Over Nomination Delays
Tim Rood, founder and CEO of Impact Capitol and a former executive at Fannie Mae, recently expressed his concerns on the social media platform X regarding the potential delay of Jonathan McKernan’s nomination. Rood indicated that the process may take longer than anticipated, or it might not occur at all.
Implications of Floor Time Demands
Rood mentioned that there are ongoing “rumblings” within the Democratic party about demanding 30 hours of floor time before the actual confirmation vote. This demand could impede the nomination process due to several pressing issues that the Senate needs to address first.
Referendum on CFPB Leadership
In discussions with HousingWire, Rood noted that Democrats might use McKernan’s confirmation vote as a referendum on Russell Vought, the acting director of the Consumer Financial Protection Bureau (CFPB) and head of the White House Office of Management and Budget. This strategy may center around Vought’s cost-reduction measures at the CFPB.
Consultation Concerns
Rood also raised concerns about whether McKernan had been adequately consulted regarding recent staffing cuts and changes to the bureau’s supervision and enforcement priorities. He stated, “The new priorities and [reduction in force] will result in an agency that is fundamentally different than the one he signed up to lead in the first instance.” This could potentially misalign the administration’s vision for the CFPB with McKernan’s leadership approach.
Potential Withdrawal of Nomination
Given the current circumstances, Rood suggested that McKernan may consider withdrawing his nomination, a move that could frustrate CFPB supporters. David Dworkin, president and CEO of the National Housing Conference (NHC), emphasized that Democrats should work quickly to support McKernan’s nomination, noting, “If you care about the mission of the CFPB, you want a guy like Jonathan McKernan in there as soon as possible.”
Long-Term Implications
Dworkin acknowledged that while McKernan would align with the broader agenda of the current administration, he is committed to upholding the essential functions of the CFPB without completely dismantling its previous work. “Jonathan is committed to following the statute,” Dworkin added, suggesting that this approach could find wider support across party lines.