Jonathan McKernan will be tapped by President Donald Trump to serve as undersecretary of domestic finance at the U.S. Department of the Treasury, according to a Treasury Department announcement Friday.
McKernan, a former board member at the Federal Deposit Insurance Corp. (FDIC), was nominated in February to be the next director of the Consumer Financial Protection Bureau (CFPB). He has yet to be confirmed as CFPB director, and it was not immediately clear Friday if his new role at the Treasury Department means his CFPB nomination will be withdrawn.
The press release announcing McKernan’s Treasury Department nomination noted that he has been “an advisor at the Treasury Department while awaiting Senate confirmation to lead the Bureau of Consumer Financial Protection.”
Mortgage Bankers Association President and CEO Bob Broeksmit said in a statement that McKernan’s “deep experience as a regulator, in private practice, and on Capitol Hill make him a great choice to serve as Undersecretary of Domestic Finance.”
David M. Dworkin, president and CEO of the National Housing Conference, also praised the nomination of McKernan to what he termed “one of the most important roles in the financial subcabinet — if not the most important.”
“McKernan brings a wealth of experience in housing finance and financial regulation, and his thoughtful and principled approach will serve the Treasury exceptionally well,” Dworkin said in a statement. “CFPB’s loss is certainly a win for the Treasury Department.”
The CFPB has been headed on an acting basis since February by Russell Vought, who also serves as director of the White House’s Office of Management and Budget. Under Vought, the CFPB has been embroiled in a series of controversies, including a lawsuit related to the agency’s attempts to lay off nearly 90% of its workforce.
On March 6, a Senate committee voted to advance McKernan’s CFPB nomination in a 13-11 vote along party lines. His confirmation process then stalled, with no date set for a full Senate hearing, leading to speculation about the status of the nomination.
If confirmed to the high-ranking Treasury Department position, McKernan would be involved with developing and coordinating the department’s policies and guidance in areas including domestic finance, fiscal policy and other related economic matters.
