The bureau has been the subject of a huge reining-in this week
Image: Federal Deposit Insurance Corporation, Public domain, via Wikimedia Commons
President Donald Trump has nominated Jonathan McKernan to lead the Consumer Financial Protection Bureau (CFPB) at a time when the agency’s future is more uncertain than ever.
While McKernan is seen as a serious and experienced regulator, his appointment comes after two weeks of turmoil, with Trump and Elon Musk’s Department of Government Efficiency (DOGE) pushing to dismantle the agency altogether.
McKernan, a former Federal Deposit Insurance Corp. (FDIC) board member, is a seasoned regulator and has worked with both Republican and Democratic regulators. But with the CFPB’s operations already gutted under acting director Russell Vought, it remains unclear whether McKernan will be able to lead the agency effectively – or if it will even continue to exist in its current form.
CFPB in crisis
The CFPB, created in 2011 to oversee consumer financial protection, has seen its biggest upheaval in years under Vought’s short tenure. Since taking control, Vought has halted the agency’s work, canceled over $100 million in vendor contracts, and fired more than 70 employees, many of them in enforcement roles.
Adding to the chaos, Musk’s DOGE has been combing through CFPB financial records and internal data, raising concerns about further cuts. Vought has also refused to request additional funding from the Federal Reserve, which provides the CFPB’s budget, leaving the agency’s future even more uncertain.
For McKernan, the challenge will be convincing remaining staff that the agency can still function.
“McKernan is going to have to convince his staff that there is a path forward for the CFPB in this administration,” said Melissa Baal Guidorizzi, a former CFPB enforcement attorney. “If he does that, I think he will find career staff willing to support him.”
Read more: Top CFPB officials quit after HQ shuttered
Who is McKernan?
McKernan has extensive experience in both government and private practice. He worked at WilmerHale, served in the Treasury Department, and was a senior financial policy adviser to former Sen. Bob Corker (R-Tenn.).
Most recently, he spent over two years as a board member at the FDIC, where he took the lead in addressing a sexual harassment scandal that had rocked the agency. Despite his conservative stance on financial regulation, he found common ground with former CFPB Director Rohit Chopra in reviewing the influence of asset managers like BlackRock and Vanguard on the banking sector.
Industry leaders, including mortgage professionals, have responded positively to his nomination.
“The news that McKernan is the choice is reassuring because he will bring seasoned policy expertise on consumer financial law,” said Adam Rust, director of financial services at the Consumer Federation of America.
The Mortgage Bankers Association (MBA) also welcomed the nomination.
"MBA congratulates Jonathan McKernan on his nomination to serve as Director of the CFPB," said MBA president and CEO Bob Broeksmit. "His deep experience as a regulator, in private practice, and on Capitol Hill – coupled with his background working on housing policy – make him a strong choice to lead the CFPB's new direction under the Trump administration."
Despite the praise, many remain skeptical of what McKernan can accomplish, given that the agency is being dismantled from within.
What’s next for the CFPB?
If McKernan is confirmed, he will inherit a weakened CFPB, with fewer resources and a shrinking staff. Some expect him to take a measured approach similar to former CFPB Director Kathy Kraninger, who led the agency under Trump’s first term.
Kraninger kept oversight and enforcement actions running, though she rolled back aggressive rules targeting bank fees and payday lenders. McKernan may follow the same playbook—if he’s given the chance.
But with Trump and Musk pushing to eliminate the CFPB entirely, McKernan may find himself trying to lead an agency that is already on its way out.
“He may face some constraints ahead of him as it’s not at all clear what the endgame is,” said Eamonn Moran, a partner at Holland & Knight LLP and a former CFPB regulatory attorney.
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