What's a CFPB director to do these days?

Zoom out: Typically an agency wouldn't make big moves like this before a new director walks in the door.

• The case dismissals are unprecedented. In the CFPB's 14-year history, only one other case was dismissed without garnering any relief for consumers, Eric Halperin, the CFPB's former enforcement head, told CNBC.

Between the lines: The dropped lawsuits include one against Capital One, filed less than a week before Trump took office, alleging the bank misled consumers over high-interest savings accounts. The case was considered a stretch by some observers, and the timing was criticized.

Other dismissed lawsuits were more traditional CFPB fare:

• One against a company that originates mortgages for mobile homes, accused of giving loans to unqualified borrowers, another against Rocket Homes alleging it gave kickbacks to brokers, yet another against a student loan servicer for alleged unfair and deceptive practices, and one against an installment lender accused of "loan churning." All were dismissed with prejudice, which means the claims cannot be pursued again.
• "I don't think there's any kind of rhyme or reason here," said Julie Morgan, a former assistant director at the agency in the Biden administration. "They're just sort of quietly walking away from enforcing the law."

News of the dropped cases filtered into the hearing late on Thursday morning.

• "Mr. McKernan, literally while you've been sitting here and you've been talking about the importance of following the law, we get the news that the CFPB is dropping lawsuits against companies that are cheating American families, or alleged to be cheating American families," Sen. Elizabeth Warren (D-Mass.) said at the nomination hearing. "It seems to me the timing of that announcement is designed to embarrass you."

Catch up quick: Since Elon Musk posted "CFPB RIP" on X on February 7, hundreds of CFPB employees have been fired.

• The agency's acting director, Russell Vought, ordered nearly all work stopped. Its headquarters are shuttered.

• The CFPB's X account is gone, and its homepage shows a 404 message, though other parts of the website are working.
• The administration said in a court filing earlier this week it does intend to keep the CFPB around, albeit in a more streamlined way.

Where it stands: McKernan is a fairly traditional Republican, who most recently served on the FDIC board.

• In his testimony, he said the agency "suffers from a crisis of legitimacy," which needs to be corrected so the agency can "do what it's supposed to do, look out for the American consumer."
• Under questioning, he emphasized to senators that he would enforce the law as statutorily required (an issue that has become a concern with the current administration.)

Between the lines: "McKernan will face the undeniable choice between completing the destruction of the CFPB or trying to rebuild the shell of an agency in the face of widespread demoralization and departures," said one former agency official, requesting anonymity for fear of retribution.

• "If I were him, I would be in despair. No capabilities have been left intact."

The bottom line: The CFPB isn't doing much these days besides unwinding its previous work, so its new leader might not have much to do when he gets there.