The Consumer Financial Protection Bureau (CFPB), the Senate Banking and Housing Committee, and the House Financial Services Committee are all stuck with the same conundrum of trying to find the right personnel to fill some of their crucial leadership positions that will soon become vacant. Naturally, the mortgage industry is paying full attention to see who will fill each available position, because the individuals that do will have a large influence on what direction the financial sector will go moving forward.
Current leaders that are moving on:
- Raj Date – The Number Two Executive and de facto leader at the CFPB is stepping down from his post on January 31st, 2013.
- Richard Shelby (R-AL) – Senator Shelby will end his tenure as the Minority Leader of the Senate Banking and Housing Committee due to the position’s official term limit.
- Barney Frank (D-MA) – Congressman Frank, the co-author of the controversial Dodd-Frank Act, will end his tenure as not only a Ranking Member of the House Financial Services Committee, but as a United States Congressman as well.
- Spencer Bachus (R-AL) – Congressman Bachus, Chairman of the House Financial Services Committee, has reached the position’s official term limit and must step down.
- Herb Kohl (D-WI) – Senator Kohl, a Democratic member of the Senate Banking and Housing Committee, decided not to run for re-election this past fall, which will end his tenure as a Committee member and as a United States Senator.
- Daniel Akaka (D-HI) – Senator Akaka, like Congressman Frank and Senator Kohl, decided not to run for re-election this past fall, effectively ending his tenure as a Democratic member of the Senate Banking and Housing Committee and as a United States Senator.
- Mike Crapo (R-ID) – Senator Crapo, who's been a member of the Senate Banking and Housing Committee since 1999, is expected to replace Senator Shelby and become the Committee’s new Minority Leader. He is currently second in seniority among Republicans serving on the Committee, and has a strong background and interest in the financial sector. During his current tenure on the Senate Banking and Housing Committee, he has made strong contributions in the areas of regulatory relief, expansion of homeownership, trade and securities, and investments.
- Maxine Water (D-CA) – Congresswoman Water is expected to replace Congressman Frank and become the new Ranking Member for the Democratic Party within the House Financial Services Committee. She is currently second in seniority among Democrats serving on the Committee, and like Congressman Frank, she has become a committed advocate for addressing the housing needs of low-income people.
- Jeb Hensarling (R-TX) – Congressman Hensarling is expected to become the next Chairman of the House Financial Services Committee, replacing Congressman Bachus who has reached the position’s official term limit. Like most GOP legislators, Congressman Hensarling wants to dismantle the Dodd-Frank Act, reduce the government’s control over the housing market, and supports refocusing the Federal Reserve. He is already the Committee’s Vice Chairman, and has served on President Obama’s Simpson-Bowles Deficit Commission; making him the most qualified candidate for the position.
- Elizabeth Warren (D-MA) – Ms. Warren, who’s best known for her role in designing the CFPB, is the 2012 Senator-elect for the state of Massachusetts, and is currently a leading candidate to replace either Senator Akaka or Senator Kohl on the Senate Banking and Housing Committee—even though it is rare for a freshman senator to receive such a position. She’s a bankruptcy law expert who knows the financial industry inside and out, and is a big advocator of the Dodd-Frank Act.
- Chris Coons (D-DE) – Senator Coons is another leading candidate to replace either Senator Akaka or Senator Kohl on the Senate Banking and Housing Committee. Already serving on the Foreign Relations, Judiciary, Energy and Natural Resources, and Budget Committees, he is the only freshman senator to serve as a subcommittee chair (Foreign Relations Subcommittee), and has displayed an eagerness to find bipartisan solutions to the nation’s most pressing issues.
The CFPB hasn’t yet specified any clear contenders for their Number Two Executive position, which will become available once Raj Date leaves on January 31st, 2013. Replacing Mr. Date’s industry expertise and consumer advocacy won’t be an easy task for the Bureau, and many are considering his departure to be a significant loss.
All positions changes will begin to take place in the beginning of 2013 once the recently elected Senators and Congressmen/women have been officially sworn into office.