With a vote along party lines, the U.S. Senate on Thursday confirmed Office of Management and Budget official Kathy Kraninger as the next director of the Consumer Financial Protection Bureau (CFPB).
Kraninger becomes the second director of the consumer watchdog agency authorized by the Dodd-Frank Act in 2010 in response to the financial crisis that led to the Great Recession.
Many industry groups, including the American Land Title Association (ALTA) and the National Association of Realtors (NAR) welcomed her confirmation.
“ALTA and its members look forward to working with Kathy Kraninger and the Bureau’s staff to help provide positive and compliant real estate settlement experiences for consumers and lenders, and serve as a resource on important issues such as wire transfer fraud, third-party oversight and mortgage disclosures,” ALTA’s interim CEO Cornelia Horner said in a statement. “As the Bureau transitions to new leadership, we are hopeful Director Kraninger and her team will address the inaccurate disclosure of title insurance fees under the TILA-RESPA Integrated Disclosures rule.”
“While the Bureau’s disclosures have helped homebuyers better understand their mortgage costs, consumers would value their disclosures more if the Bureau showed the accurate costs of title insurance,” Horner added. “The Bureau has an obligation to make this simple change, so consumers receive accurate information about title insurance at closing.”
“[NAR] applauds the Senate’s confirmation of Kathleen Kraninger to lead the Bureau of Consumer Financial Protection – the agency tasked to ensure consumers’ financial interests are protected,” NAR Senior Vice President of Government Affairs Shannon McGahn said.
“America’s 1.3 million Realtors recognize the critical role the Bureau plays in maintaining the integrity of significant financial transactions like home purchases,” McGahn added. “Under Ms. Kraninger’s leadership, we believe the Bureau will properly protect consumers and support businesses that help more individuals achieve the American Dream of homeownership.”
Democrats said they opposed Kraninger based on her lack of experience advocating on behalf of consumers. Kraninger has spent most of her career at the Department of Homeland Security.
The senate’s 50-49 affirmative vote for Kraninger officially ended a tug-of-war for leadership of the CFPB that started with former Director Richard Cordray’s resignation last year. Cordray attempted to place Deputy CFPB Director Leandra English into the top stop. She subsequently failed in her legal attempt to block President Donald Trump’s appointment of Mick Mulvaney as acting director.