The Davis Wright Tremaine LLP partner told Mortgage Professional America that the recent cull witnessed at the CFPB didn’t mean rules were vanishing, and highlighted the existence of other bodies that were still enforcing guidelines and regulations.
“We all still have to comply with all the laws that the CFPB has jurisdiction to enforce,” Brandriss said. “And there are also other regulators – consumer, state regulators, banking regulators – depending on whether a mortgage participant is a bank originator, or servicer, or nonbank. You’ve got different regulators and consumers out there still looking to enforce the laws.
“And there will be likely another iteration of the CFPB in a future administration that will look back over what’s happening now. So I think, in general, what we’re talking to our clients about is there isn’t likely to be a huge impact on how businesses view their own obligations in monitoring their own compliance activities.”
The Trump administration moves to curtail the CFPB, with Acting Director Russell Vought halting operations and top officials resigning. Elon Musk signaled the bureau’s demise, while Democratic senators warn of risks to consumers.https://t.co/vcame6HfpP
— Mortgage Professional America Magazine (@MPAMagazineUS) February 13, 2025
How will things change with the CFPB out of the picture?
The most obvious change to come about from last week’s purge is that supervision has been paused, meaning a lack of communication in some respects with those industry members and companies that had found themselves under investigation or supervisory examination by the CFPB.
That’s not to say, though, that the industry is now getting away scot-free – and while the Trump administration has not revealed its plans for a CFPB replacement, the prospect has been raised of other enforcers, including states taking a more aggressive position to fill the void left by the bureau.
