Paoletta Becomes CFPB Acting Director

CFPB Deputy Director Mark Paoletta has become the Bureau’s Acting Director following the expiration of Russell Vought’s service as Acting Director on August 1. Under the Federal Vacancies Reform Act, Vought could serve as Acting Director only for a limited period.

President Trump has nominated Brian Johnson to serve as the CFPB’s next Director, but the Senate Committee on Banking, Housing, and Urban Affairs has not yet voted on his nomination. The Committee held Johnson’s confirmation hearing on July 23 and gave him until the end of July to respond to written questions submitted by Senators. At this time, Johnson’s responses to those questions are not publicly available. Until the Senate confirms Johnson and he is sworn into office, the Bureau will continue to operate under acting leadership.

In the meantime, Vought remains Director of the Office of Management and Budget, a position he has held throughout his tenure as Acting CFPB Director.

The Bureau’s policy direction is not expected to change under Paoletta. As the CFPB’s Chief Legal Officer and Deputy Director, he has been a principal architect of the Bureau’s legal and regulatory initiatives during the second Trump Administration and has played a central role in implementing its efforts to reshape the agency’s priorities and operations.

Moreover, according to a report by Eleanor Mueller of Semafor, Vought will remain at the CFPB in a senior adviser role now that his service as Acting Director has ended and he will continue in that capacity until Johnson is confirmed by the Senate and assumes office as Director. If that report proves accurate, Vought is likely to continue exercising significant influence over Bureau policies.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.