McWatters’ name has surfaced along with three or four others to head the CFPB

WASHINGTON–NCUA Chairman J. Mark McWatters is on the shortlist to potentially head the Consumer Financial Protection Bureau, according to one industry report.

McWatters’ name has surfaced along with three to four others, according to “industry sources” as reported by American Banker.

“He’s pragmatic and measured, which will make it very difficult for Democrats to vilify him during the nomination process,” Isaac Boltansky, an analyst at Compass Point Research & Trading, was quoted by American Banker as saying.

American Banker reported that others in the running for the appointment to the position include Todd Zywicki, a law professor at George Mason University; Rep. Jeb Hensarling (R-TX), who chairs the House Financial Services Committee; and Keith Noreika, the former acting comptroller of the currency.Any appointment to lead the CFPB, of course, could be affected by a lawsuit currently working its way through the courts that challenges President Trump’s authority to appoint Mick Mulvaney as the current acting director. That suit was filed by Leandra English, the deputy director of the CFPB who is arguing that as the result of the resignation by former director Richard Cordray the Dodd-Frank Act states the deputy director should be elevated to the top position.

Sources told American Banker the president hopes to announce a permanent appointment in January, allowing Mulvaney to return to his other position as director of the Office of Management and Budget.

“McWatters would potentially offer the administration another way forward,” American Banker reported. “He was confirmed to head the credit union agency over the summer, suggesting he’d be able to secure the necessary votes. And while he’s solicited the CFPB to roll back its oversight of credit unions in several cases, McWatters has not openly criticized the consumer agency — its operations or its structure — as others being considered have done.”

This is not the first time McWatters’ name has surfaced as a potential nominee to another agency leadership position beyond NCUA. He was previously considered for appointment to the board of the Export-Import Bank, but that move was blocked in Congress.

McWatters, an attorney and CPA, joined NCUA in 2014 after being appointed by President Obama, and was named chairman in January of this year. Should McWatters leave NCUA, it would give President Trump the opportunity to appoint all three NCUA board members immediately, should he chose to do so. The term of current NCUA Board Member Rick Metsger has already expired, and the third board seat is currently vacant.