Cordray Receives Recess Appointment

As expected, President Obama appointed former Ohio Attorney General Richard Cordray to lead the CFPB. Both House and Senate Republicans made use of pro forma sessions over the holiday recess to prevent a recess appointment, but the President appointed Cordray foreshadowing a possible constitutional challenge to Cordray’s appointment. 

Cordray will begin work immediately, and with the appointment, the CFPB can promulgate new rules and will have full use of its supervisory and examination authority over nonbanks, particularly mortgage servicers – a long-held top priority of the CFPB.