On February 27, Jonathan McKernan, President Trump’s nominee for Director of the CFPB, testified before the U.S. Senate Committee on Banking, Housing, and Urban Affairs. Mr. McKernan stated in his prepared remarks that the CFPB has historically “pushed beyond the limits of its statutory authority” and “offended our basic notions of fairness and due process when it has regulated by enforcement.” Throughout the hearing, Mr. McKernan repeatedly asserted that, if confirmed, he would ensure the Bureau executed its statutory functions and follow the law, as well as indicating the Bureau would continue to “monitor risk inside and outside the banking system.”

When questioned, Mr. McKernan took the position that the CFPB was not a “prudential regulator” and further stated that he would not “evaluate the success” of the Bureau based on the “dollar figure” of money returned to consumers. Instead, Mr. McKernan indicated that his primary goal is to create a more streamlined and efficient Bureau. Mr. McKernan also indicated that he plans to lead the CFPB in a manner that would “advance the President’s pro-growth agenda.”

Finally, Mr. McKernan noted how wished to continue the work his predecessor, Director Rohit Chopra, did regarding data brokers: “[O]ne thing I do commend Director Chopra on was his work to increase our attention on … policy issues posed by data collection, whether it’s data aggregators, data brokers,” noting that there are privacy and national security issues at stake, and arguing that these data collection efforts deserve some focus.

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