The winds of change are sweeping through Washington, and few institutions stand more precariously at the crossroads than the Consumer Financial Protection Bureau (CFPB). Established in 2010 under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB was envisioned as a powerful watchdog, ensuring fairness in financial practices, protecting consumers, and holding institutions accountable. Today, however, its future hangs in the balance as the Trump administration reshapes the federal landscape with a distinctly deregulatory agenda.
Under the new administration, the CFPB has already faced significant upheaval. President Trump’s dismissal of former Director Rohit Chopra marked the beginning of a new chapter for the bureau. In his place, Treasury Secretary Scott Bessent, a former hedge fund manager and staunch advocate of deregulation, was appointed as acting director. Bessent wasted no time in executing the administration’s vision—halting ongoing CFPB operations and freezing the implementation of pending regulations, including a crucial rule designed to prevent data brokers from selling sensitive personal information.
For many, Bessent’s leadership signals a decisive shift. Critics view it as the beginning of the end for aggressive consumer protections, while proponents see an opportunity to reduce regulatory burdens they believe stifle innovation and economic growth.
To gauge the potential impact of these changes, we spoke with seasoned professionals in the mortgage industry—individuals who have navigated the complexities of CFPB regulations firsthand.
Andy Harris, founder of Vantage Mortgage Brokers and former executive director at the National Association of Mortgage Brokers, expressed concern about the bureau’s inconsistent enforcement history. “The CFPB ramped up enforcement toward the end of 2024, almost as if anticipating a shift in administration,” Harris noted. Without stringent oversight, he fears unethical practices could proliferate. “Violations in primary mortgage origination are at their highest levels since the subprime lending crisis of 2008. The absence of strong enforcement could lead us back down a dangerous path.”
On the other hand, Stephen Moye, a top-producing loan officer with New American Funding, advocates for thoughtful reform rather than wholesale deregulation. “Regulation isn’t inherently bad. If we take our industry seriously, we should support governance that protects both lenders and borrowers,” Moye explained. However, he highlighted specific areas needing improvement—particularly loan officer compensation. “Current regulations prevent us from offering returning clients competitive refinancing rates, unlike online lenders. This rigidity undermines customer loyalty and needs revisiting.”
The Trump administration’s stance has emboldened congressional Republicans, who have long criticized the CFPB’s structure and authority. Efforts to transform the bureau into a commission-based model—similar to the Securities and Exchange Commission—may soon resurface. Such a move would replace the single-director leadership with a bipartisan panel, reducing unilateral authority and increasing industry influence.
Simultaneously, ongoing legal challenges to the CFPB’s funding structure have gained momentum. Critics argue that the bureau’s ability to draw funds directly from the Federal Reserve—bypassing congressional appropriations—violates constitutional principles. If courts side with these arguments, the CFPB’s operational capacity could be significantly undermined.
Looking ahead, the CFPB’s mission appears poised for transformation. Under Bessent’s leadership, enforcement actions are likely to give way to a more collaborative approach with industry stakeholders. This shift could prioritize guidance and education over punitive measures, fostering what proponents describe as a “business-friendly” environment. Yet, consumer advocates warn this approach could dilute essential protections.
Several key areas are expected to define the CFPB’s new focus:
The appointment of Scott Bessent marks a turning point for the CFPB—one defined by deregulation, industry collaboration, and a retreat from aggressive enforcement. Whether this shift represents progress or peril depends largely on one’s perspective.
Supporters of deregulation argue that reducing bureaucratic oversight will unleash economic growth, streamline lending processes, and promote innovation. Yet consumer advocates warn that without robust protections, the most vulnerable borrowers could once again face exploitation and financial instability.
In the coming months, stakeholders across the financial and housing sectors will watch closely as the CFPB navigates its uncertain future. Will it emerge as a leaner, more industry-friendly entity? Or will consumer protection once again take center stage in future administrations?
One thing remains clear: The CFPB’s evolution will shape the financial landscape for years to come—influencing not just institutions, but the everyday lives of American consumers. As this story unfolds, vigilance and informed advocacy will be crucial in ensuring that progress does not come at the expense of protection.